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Author: 


Becker,  George  J. 


Title: 


A  treatise  on  the  theory 
and  practice  of... 

Place: 

Philadelphia 

Date: 

1864 


9^-S'Po6,'Sl.  -? 


MASTER   NEGATIVE   # 


COLUMBIA  UNIVERSITY  LIBRARIES 
PRESERVATION  DIVISION 

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ORIGINAL  MATERIAL  AS  FILMED  -    EXISTING  BIBLIOGRAPHIC  RECORD 


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Becker,  George  J 

A  treatise  on  the  theory  and  practice  of  book- 
keeping by  double  entry,  designed  to  elucidate 
the  principles  of  the  science,  and  to  impart  a 
knowledge  of  the  forms  observed  by  practical 
accountants  in  the  various  departments  of  busi- 
ness, by  George  J.  Becker  ...   Philadelphia,  But- 
ler, 1864. 

184  p,     forms.     23^  cm. 


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INITIALS 


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FILMED  BY  PRESERVATION  RESOURCES,  BETHLEHEM,  PA. 


BIBLIOGRAPHIC  IRREGULARITIES 

MAIN  ENTRY:    Becker.  Georae  J. 


A  treatise  on  the  theory  and  practice  of. 


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TREATISE 


ON  THE 


THEORY  AND  PRACTICE 


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BOOK-KEEPING 


BY  DOUBLE  ENTEY. 


DESIGNED    TO      * 

^'^'^LKmEOFTHFZl^^^^^         ''''^  SCIENCE,  AND  TO  IMPART  A  KNOW- 

LEDGE  OF  THE  FORMS  OBSERVED  BY  PRACTICAL  ACCOUNTANTS 

IN  THE  VARIOUS  DEPARTMENTS  OF  BUSINESS. 


BY  GEORGE  J.  BECKER, 

PROTESSOB  OF   DEAWIHO,   WWTWO,    AND   BOOK-KEBPING,    IK  OIBA»D  OOLUOT. 


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:-PfiILA-Dfi'LPHIA: 


PUBLISHED  BY  E.   H.  BUTLER  &  Co. 

1868. 


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Entered,  according  to  Act  of  Congreas.  in  the  vo«ir  K51j  hj 

GEORGE    J.    BECKER, 

*he  CIerk*s  Office  ot  the  JDuthct  Court  of  the  United  States,  in  and  for  the  Cutera 

District  of  Pennsylvania. 


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CONTENTS. 


'■«*>•  > 


Preface,      -  -  ...  .  . 

Plan  ol  the  Work,        -....«. 

Introduction,  ---...•. 

Names  of  Books,  ....... 

The  Day  Bi>ok,  remarks  on,  ---••• 

The  Cash  Book,  remarks  on,    •-•••. 
The  Sales  Book,  remarks  on,  -••..» 

The  Journal,  remarks  on,  ...»». 

The  Ledger,  remarks  on,    •-..... 

Classes,  character,  and  titles  of  accounts,       -  -  .  • 

Accounts,  -•--•••« 

ExPLAVATTOir    OF     AcCOtTlfTS     IN    THK     LeSGKR,    WITH    THK    RULES    FOR 

OPENING  AND  CLOSING  thbm,  .... 

Stock,  ....... 

vasn,  ""•..••» 

Merchandise,      -  -  .  .  .  - 

Bills  Receivable,      .  * 

Bills  Payable,     -  .  - 

Personal  Accounts,  -  •---.. 

Real  Estate,  Ship,  Railroad  Stock,  Bank  Stock,  or  anv  other  Specu- 
lation account,      -  -  .  .  . 
Profit  &  Loss,    --..-.. 
Discount,  Interest,  Exchange,  Brokerage,  Premium,  &c. 
Expense,             ---... 
Commission,            -            >            .            .            . 
Guarantee,          -----.* 
Loan  or  Borrowed  and  Lent,           .... 
Suspense,           -            _            -            ,            . 
Debts  Payable  or  Sundry  Creditors,            -            -            .            .. 
Debts  Receivable  or  Sundry  Debtors,    .... 
Sales  No.  1,  or  A.  B.'s  Consignment,          .... 
Adventure  No,  1,  (London,)       ... 
Adventure  in  Co.  with  A.  B.  or  Shipment  in  Co.  with  A  B., 
Insurance,          --...., 
Merchandise  in  Co.  and  other  Speculation  accounts  in  Co., 
Intrusted  Real  Estate,  Stocks,  Bonds,  &c., 
*        Exchange  account  in  Co.  with  A.  B.          - 

Balance,  hemarks  on,  •-.... 

Balance  Sheet  or  Transfer  Balance  Sheet,  ... 

Transferring  accounts  from  the  old  to  the  new  Ledger, 

RcLEs  FOR  Journalizing,   with  exemplifications   of  Jovrhal  and 
Ledger  entries,  .  -  -  .  . 

Debtor  and  Creditor,  remarks  on,  - 

The  Index  to  the  Ledger,  directions  for,      - 

The  Bill  Book,  remarks  on,       - 

The  Commission  Sales  Book,  remarks  on,  -  .  - 

The  Invoice  Outward  Book,  remarks  on, 

(3) 


f 
T 
11 
13 
14 
15 
16 
17 
18 
19 
23 


23 

23 
24 

24 
25 
25 
26 

3(. 

27 
27 
28 
28 
29 
29 
30 
30 
31 
31 
32 
33 
33 
33 
34 
35 

35 

36 
36 


38 

48 
5i 
58 
53 
53 


BECKER'S  BOOK-KEEPING. 


ft 


The  Check  Book,  remarks  on,        - 

Books  of  Original  Entry,  remarks  on,  - 

Opening  a  Set  of  Books,  directions  for, 

Periodical  closing  of  accounts,  .  .  - 

IjrrBcoucTORT  Examples — Fibst  Sehiks,  •  • 

Transactions  and  Journal  Entries,         -  .  - 

Directions  for  the  Introductory  Series, 
Posting,  directions  for,  .  -  .  - 

Examination  of  the  Ledger,  directions  for, 
Correction  of  Errors,  directions  for,      -  -  - 

Proof  of  the  Ledger,  remarks  on,  -  .  - 

Trial  Balance,  -  -  -  -  - 

Inventory,  directions  for,     -  -  -  - 

Balancing  and  closing  the  Ledger,  directions  for. 
Form  of  the  "  Grand  Balance  Sheet " 
Statement  and  Closing  Entries  of  Introductory  Series, 
*    Ledger  to  the  Introductory  Series, 

Sbcokb  Sebiss,  .  .  -  -  • 

Remarks  on  the  Transactions,  -  -  -  • 

Stock  and  Proof  Book,        .  -  -  - 

Transactions  of  Second  Series — First  Part, 
Journalizing  Second  Series — First  Part,     - 
Posting  and  closing  Second  Series — First  Pait, 
Second  Part  of  the  Second  Series, 
Transactions  of  this  Part,  -  -  -  • 

Closing  of  Second  Part,  ... 

Tbibb  Sebiss,  .«-••- 

Stock  and  i*roof  Book,         .  -  .  - 

Transactions  of  Third  Series— First  Part, 
Posting  and  Proof  of  the  Ledger,    -  -  - 

Transactions  of  Third  Series— Second  Part,    • 
Closing  the  Books  of  Third  Sciies, 

FOUBTH    SeBIES,  ..•••• 

Stock  &  Proof  Sheet,  .  -  -  - 

Transactions,  ....  - 

DlSCBIPTIOir    AND     ExBMPtlTICATlOjr    OF    CoMMEBCIAL    FuBKS : 

Drafts  and  Bills  of  Exchange,         -  -  - 

Promissory  Notes,  .  •  .  -  - 

Due  Bills,  -  -  .  -  « 

Orders,  .-.--• 

Receipts,      ------ 

Bills,  -.•--- 

Bottomry  Bonds,     -  •  •  -  - 

Mbbcaittilx  Abithmbtic  :       •  -  •  •  • 

Interest,        -  •  •  •  . 
Discount,            -.•--- 

Insurance,                .  -  -  •  - 

Equation  of  Payments,  .  .  - 

Domestic  Exchange,  .  •  -  • 

Foreign  Exchange.        .  •  -  - 

Measurement  of  Wheat,  -  -  •  • 

Measurement  of  Whisky,  .  •  .  - 

Bloom  and  Bar  Iron,  .  -  •  • 


64 

66 
56 
67 

61 

62-63 
66 
67 
67 
68 
69 
70 
71 
72 
74 

76-77 

-  79 

81 

83 

84 

85-89 

90 

92 

93 

95-99 

.   100 

101 

-  1^3 
104-110 
.  Ill 
112-116 

-  117 

120 

124-125 
125-141 


146 
150 
152 
152 
153 
1^5 
56 


158 
160 
162 
163 
177 
17H 
179 
IPl 
182 


PREFACE. 


The  grand  object  which  should  be  kept  in  view,  by  an 
author,  who  puts  forth  a  work  upon  any  subject  connected 
with  school  education,  should  be  the  attainment  of  such  a 
system  of  principles  and  details,  as  will  facilitate  the  practical 
application  of  the  information  which  he  may  impart.  To  no 
branch  of  study  does  this  remark  apply  with  more  force  than 
to  Book-keeping.  The  great  defect  in  the  various  school  sys- 
tems of  Book-keeping  which  have  been  given  to  the  public,  lies 
in  the  fact  that  theory^  to  a  great  extent,  usurps  the  place  of 
practice.  The  extensive  experience  of  the  author  of  this  trea- 
tise, as  a  practical  Book-keeper,  enables  him  to  testify  to  the 
deficiency  in  practical  forms  and  arrangements  which  is  more 
or  less  characteristic  of  all  the  works  on  this  subject  that  have 
been  brought  to  his  notice.  His  experience  as  a  teacher  of  this 
science  has  led  him  to  regret  the  want  of  some  work,  which 
would  give  to  his  pupils  a  correct  view  of  the  manner  in  which 
books  are  kept  in  the  counting-house.  Hence,  he  has  ventured 
to  prepare  a  new  treatise  on  Book-keeping,  believing  that  the 
one  which  he  offers  to  the  public  will,  in  some  measure,  supply 
the  deficiencies  and  remedy  the  imperfections  in  those  already 
in  use. 

The  object,  then,  of  the  present  work  is  to  render  those  who 
study  it  capable  of  performing  the  duties  of  a  practical  Book 
A  2  (5) 


yREFACK. 


i 


Keeper.  The  means  which  i%  presents  for  attaining  tnat  object 
are  found  in  the  two  following  circumstances:  First,  the 
arrangement  and  forms  of  the  several  books  are  those  which 
obtain  in  actual  business;  Secondly,  the  student  is  required  to 
exercise  his  judgment  £^nd  reasoning  powers  ip  applying  the 
rules  that  are  laid  down  to  the  examples  befoJiC  him.  This 
will  appear  more  fully,  when  the  plan  of  the  work  shall  have 
been  examined. 

This  work  is  not  designed  to  be  used  exclusively  in  academies 
for  young  gentlemen.  A  knowledge  of  the  science  of  Book- 
keeping is  very  often  as  useful,  and  even  as  necessary,  to  females 
as  to  the  opposite  sex.  A  knowledge  of  the  fact  that  females 
are  frequently  intrusted  with  the  care  of  large  estates,  or  are 
obliged  to  conduct  business  of  various  kinds  on  their  owu 
account,  is,  considered  a  sufficient  objection  to  the  prevalent 
custom  of  excluding  this  science  from  the  list  of  studies  pursued 
by  them.  No  female,  whatever  be  her  condition  in  life,  can 
safely  presume  that  a  knowledge  of  Book-keeping  will  be  of 
no  advantage  to  her. 

In  preparing  this  work,  a  selection  has  been  made  of  sucl. 
definitions  and  other   matters   as   have  been  deemed   useful 
Most  of  the  explanatory  or  theoretical  portions  of  the  work, 
however,  are  original:  resort  having  been  made  to  other  authors 
only  when  such  a  course  w-xs  advantageous. 

In  the  hope  that  the  work  wul  eflfect  the  object  for  which  it 
was  designed,  it  is  submitted  to  the  public. 

THE  AUTHOR. 


PLAN  OF  THE  WORK. 


1^  •• » 


One  characteristic  of  the  present  work  is,  that  no  means  is 
offered  to  the  student  for  copying  those  entries  which  he  should 
make  himself.  With  the  exception  of  those  belonging  to  the 
Introductory  Series  all  entries  are  contained  in  a  separate  book, 
which  serves  the  purpose  of  a  key  for  the  use  of  the  teacher. 
The  student,  having  been  made  familiar  with  the  principles  of 
Journalizing,  Posting,  &c.,  together  with  their  application,  is 
thus  compelled  to  advance  in  his  work  by  the  aid  of  his  judg- 
ment and  reasoning  powers. 

Another  peculiarity  is  that  the  student  is  required  to  make 
his  own  calculations.  All  the  amounts  belonging  to,  and  calcu^ 
lations  arising  from,  the  transactions  are  omitted  in  the  examples 
of  the  several  series.  By  this  means,  it  is  believed  that  accuracy 
and  readiness  in  calculation  will  be  secured  and  the  habit  of 
fixing  the  attention  acquired. 

Connected  with  the  work  are  various  sets  of  blank  books  for 
making  the  entries.  In  some  of  these  books,  printed  instructions 
are  given  relative  to  their  use,  and  forms  are  given  for  exempli- 
fication. It  is  deemed  best  to  place  these  in  the  blank  books, 
because  they  are  thus  brought  directly  to  the  notice  of  the 
student  when  he  is  about  to  make  the  entries;  whereas,  if  they 
were  placed  in  the  work  itself,  they  might  be  forgotten,  or  per- 
haps overlooked  by  the  student. 

(7J 


8 


FLAN  OF  THE  WORK. 


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The  examples  in  this  work  are  arranged  under  four  series 
The  first  series  contains  transactions .  for  one  month.  These, 
together  with  the  Journal  entries  for  the  same,  are  intended  to 
be  copied,  in  order  to  make  the  student  acquainted  with  the 
forms  of  Journal  entries.  All  the  work  to  be  done  by  the  stu- 
dent in  this  series,  such  as  Journalizing,  Posting,  making  an 
Inventory,  Balancing,  making  a  Balance  Sheet,  &c.,  is  done  in 
the  book.  The  directions  for  the  various  parts  of  the  work 
accompany  the  series. 

When  the  student  has  gone  over  the  examples  a  sufficient 
number  of  times  to  enable  him  to  acquire  the  requisite  informa- 
tion, he  may  proceed  to  the  second  series. 

This  consists  of  two  parts,  each  of  which  contains  a  month's 
transactions.  It  represents  the  student  as  engaged  in  the  Gro- 
cery business.  The  Blotter,  Cash  Book,  and  Bill  Book  are  the 
books  of  original  entry  in  this  series;  the  last  of  these  being  used 
as  an  auxiliary  book.  They  are  also  continued  from  the  first 
to  the  second  part.  The  only  new  book  required  in  the  second 
part  of  the  series  is  the  Ledger.  One  object  of  the  series  is  to 
show  how  accounts  can  be  continued  from  one  Ledger  to  another. 
In  this,  and  some  of  the  following  series,  explanations  are 
appended  to  some  of  the  transactions,  to  assist  the  learner  in 
Journalizing  the  same. 

The  third  series  is  also  divided  into  two  parts;  and  it  repre- 
•«ents  partnership  accounts  in  the  wholesale  Jobbing  and  the 
Hardware  business.  The  former  is  represented  in  the  first  part 
und  the  latter  in  the  second.  In  this  series,  the  student  is  taught 
to  dispense  with  a  Journal,  the  Posting  being  made  directly  from 
the  books  of  original  entry  to  the  Ledger.  The  Bill  Book  is  here 
•one  of  the  principal  books.  The  Sales  Book  and  Invoice  Book 
are  also  introduced.  Directions  are  given  for  making  a  "  Grand 
Balance  Sheet"  for  a  partnership  concern. 

The  fourth  sieries  treats  exclusively  of  the  Shipping  and  Com- 
joaission  business     It  is  intended  to  make  the  student  familiar 


PLAN  OF  THE  WORK.  ^ 

with  every  kind  of  transactions  in  this  branch  of  business.  ITie 
use  and  form  of  the  Account-Current-Book,  the  Commission 
Sales  Book,  the  Check  Book,  and  the  Bank  Book  are  explained 
and  illustrated. 

There  is  appended  to  the  work  a  short  article  on  drafts,  bills 
of  exchange,  promisory  notes,  receipts,  &c.,  together  with 
examples  of  the  various  forms  of  each.  A  few  pages  on  mer- 
cantile arithmetic,  containing  the  explanations  of  those  arith- 
metical operations  involved  in  the  transactions,  especially  in 
those  of  the  fourth  series,  concludes  the  work. 

The  questions  at  the  bottom  of  the  page  will,  it  is  thought, 
be  of  use  to  teachers  in  examining  their  students;  they  refer 
to  all  the  important  parts  of  the  work,  and  thus  they  will  enable 
the  teacher  to  examine  his  class  in  a  much  shorter  time  than  he 
could  do  in  their  absence. 


II 


•I 


TREATISE 


ON  THE 


THEORY  AND  PRACTICE 


OF 


BOOK-KEEPING 


BY  DOUBLE  ENTRY. 


>  •  •  »  » 


INTRODUCTION. 


Book-keeping  is  the  art  of  making  such  a  record  of  a  per- 
Bon's  effects  and  business  relations  with  others,  as  will  enable 
him,  at  any  time,  to  ascertain  the  aggregate  amount  of  his 
property,  and  the  nature  and  value  of  its  component  parts. 

There  are  two  systems  of  B'>ok-keeping  in  use,  viz.:  that  of 
Single  Entry  and  that  of  Double  Entry.  The  former  exhibits 
merely  the  relation  of  the  merchant  to  his  debtors  or  creditors. 
Its  results  are  so  unsatisfactory,  and  it  is  so  little  adapted  to  the 
calls  of  business,  that  its  consideration  is  excluded  from  this 
work.  To  these  reasons  for  exclusion  we  may  add  another, 
viz.:  that  a  knowledge  of  the  Double  Entry  system  will  enable 
the  student  to  keep  books  by  Single  Entry. 

Double  Entry  Book-keeping  shows  not  only  the  relations 
existing  between  the  merchant  and  those  with  whom  he  has 
business  transactions,  but  also  those  existing  between  him  and 
the  various  kinds  of  property  that  he  possesses,  or  in  which  he 
deals.  It  is  the  only  mode  of  keeping  accounts  that  is  worthy 
of  being  systematized  upon  scientific  principles.  It  is  the 
only  mode  worthy  the  name  of  Book-keeping, 

(11) 


1 


12 


INTRODUCTION. 


In  the  foregoing  remarks,  we  have  used  the  word  "  mer 
chant,"  as  the  representative  of  a  class,  and  not  with  a  view 
of  conveying  the  idea  that  the  science  of  Book-keeping  is 
adapted  merely  to  mercantile  affairs.  Merchants,  mechanics, 
professional  men,  and  persons  in  every  occupation  of  life  will 
find  in  the  system  of  accounts  of  which  we  propose  to  treat,  a 
convenient  mode  of  preserving  a  record  of  their  pecuniary 
condition. 

The  science  of  Book-keeping  is  based  upon  certain  princi- 
ples which  are  universal  in  their  application  to  commercial  and 
other  accounts.  Hence,  if  the  arrangement  of  the  books  differs 
in  different  houses,  the  difference  should  be  accounted  for  by 
the  circumstance  that  certain  forms  are  better  adapted  to  the 
nature  and  demands  of  one  kind  of  business  than  others.  But 
the  Book-keeper  who  understands  his  business  will  never  meet 
with  any  great  difficulties  in  the  performance  of  his  duties; 
because  he  is  acquainted  with  the  fundamental  principles  of 
the  science,  and  knows  that  these  are  adapted  to  every  set  of 
books. 

What  is  Book-keeping  ?  Describe  Singrle  Entry  Book-keeping,  Why  is  it 
not  treated  of  in  this  worki  Describe  Double  Entry  Book-keeping.  Is  it 
adapted  to  the  affairs  of  the  merchant  only  1  Why  can  a  good  Book-keeper 
keep  any  set  of  books  9 


NAMES  OF  BOOKS. 

No  precise  rule  can  be  given  for  limiting  the  number  of  books 
ased  in  a  system  of  Book-keeping;  many  books  which  may  be 
of  essential  importance  in  one  system  may  be  unnecessary  if 
not  useless  in  another.  One  book,  in  one  system,  may  be  made 
to  serve  the  purpose  of  two  in  another,  by  combining  the  prin- 
ciples and  forms  contained  in  the  two  separate  books.  We  can 
only  say  that  the  number  of  books  is  dependent  upon  the 
necessities  of  the  business,  or  the  pleasure  of  the  book-keeper. 
There  are  two  classes  of  books,  viz. :  Principal  and  Auxiliary, 
or  Subsidiary. 

The  Principal  Books  required  by  the  retail  dealer,  mechanic, 
or  professional  man,  are  the 


Day  Book,  or 
Blotter, 
Cash  Book, 


Bill  Book,* 
Journal,  and 
Ledger. 


Those  required  by  the  jobbing  or  wholesale  merchant,  trading 
on  his  own  account,  are  the 


Sales  Book, 
Invoice  BooK,t  or 
Goods  Bought  Book, 
Cash  Book, 


Bill  Book, 
Day  Book, 
Journal,  and 
Ledger. 


Those  required  by  the  importer,  the  shipping  and  commission 
merchant,  are  the 


Blotter, 
Cash  Book, 
Bill  Book, 


Journal,  and 
Ledger. 


•  In  a  small  business  in  which  few  or  no  notes  are  received  or  issued,  the  Bill 
Book  may  be  dispensed  with,  or  when  used,  it  may  be  classed  among  the  Auxiliary, 
Frequently,  some  books  which  are  classed  as  «» Principal  Books"  in  one  set  or  system, 
become  by  the  necessities  of  the  business  «  Auxiliaries'*  in  another. 

t  For  explanation  of  the  uses  of  this  book,  and  exemplification  of  the  forms  ob 
served  in  it,  the  student  is  referred  to  the  blank  book  accompanying  this  work. 

B  (13) 


14 


BECKER'S  BOOK-KEEPING. 


THE  CASH  BOOK. 


15 


The  Auxiliary  Books  are  of  importance  in  proportion  to  the 
extent  of  the  business  in  which  they  are  used.  They  are  the 
following:  ^ 


Petty  Cash  or  Expense  Boi'k, 

Check  Book, 

Bank  Book, 

Receipt  Book, 

Letter  Book, 

r^ostage  Book, 


Commission  Sales  Book, 

Invoice  Outward  Book, 

Accounts  Current  Book, 

Stock  Book, 

Order  Book, 

Sundry  Memorandum  Books. 


How  many  classes  of  Books  are  there  1  What  are  they  called  1  What  are 
the  Principal  Books  required  by  the  retail  dealer,  mechanic,  &c.?  Name  those 
required  by  the  jobbing  or  wholesale  merchant,  trading  on  his  own  account; 
those  required  by  the  importer  or  the  shipping  and  commission  merchant. 
What  are  the  Auxiliary  Books  ? 


<  ♦  »» > 


THE  DAY  BOOK. 

The  Day  Book  or  Blotter,  as  it  is  commonly  called,  is  kept 
in  various  ways.  The  wholesale  dealer  and  jobbing  merchant 
makes  such  occasional  entries  in  this  book  as  do  not  properly 
belong  to  any  one  of  the  Subsidiary  Books.  Houses  engaged 
in  diversified  trading  operations,  enter  in  this  book  all  purchases, 
sales,  shipments,  and  statements  of  all  other  contracts  apper 
taining  to  the  concern. 

In  professional  or  mechanical  business,  this  book  receives  the 
entries  of  all  purchases,  sales,  property  exchanged,  work  done, 
or  services  rendered.  These  entries  should  be  made  at  the  time 
of,  or  soon  after,  the  transactions,  from  which  they  are  derived. 

In  the  early  stages  of  commerce  it  was  customary  to  record 
m  the  Day  Book  every  transaction  in  the  order  of  its  date,  and 
m  common  language.  To  this  plan,  most  authors  on  book- 
keeping still  adhere.  At  present,  the  general  practice  of  account- 
ants is  to  express  the  transaction  in  Journal  form,  pointing  out, 
first,  the  Dr.  and  Cr.  accounts,  then  the  explanation  or  the 
reason  why  such  account  is  Dr.  or  Cr.,  with  the  amount 
expressed  in  figures. 

The  book,  as  generally  used,  has  four  columns;  in  the  first, 
or  marginal  column,  on  the  left  hand,  is  entered  the  Journal  page, 


*'S> 


to  which  the  entry  is  transferred,  preparatory  to  its  being  carried 
to  the  Ledger.  Occasionally  there  are,  also,  entered  in  this 
column  any  remarks  which  the  case  may  require,  such  as  "  re- 
ceived," "  delivered,"  &c.  When  payment  is  received  or  made 
before  the  entry  is  copied  into  the  Journal,  it  may  be  marked, 
in  this  column,  "  Paid,"  with  the  date  of  payment  ;*  the  amount 
may  ther  be  entered  in  the  Cash  Book  to  the  credit  or  debit  of 
the  account  representing  the  thing  given  or  received. 

In  the  second  column  the  transaction  is  entered ;  the  third 
and  fourth  are  money  columns.  The  inner,  or  left-hand  money 
column,  contains  the  extension  of  the  several  items  of  each 
transaction,  and  the  outer,  or  right-hand  money  column,  is  re- 
served for  the  footing  of  the  same.  This  is  the  case  where  there 
is  but  one  Dr.  and  Cr. ;  but  when  there  are  several  Drs.  and  one 
Cr.,  or  one  Dr.  and  several  Crs.,  or  when  there  are  several  ac- 
counts on  both  sides,  the  inner  column  is  used  for  the  insertion 
of  the  Dr.  amounts,  and  the  outer  column  for  the  Cr.  amounts. 
The  object  of  this  arrangement  is  to  facilitate  the  operation  of 
Journalizing  and  Posting,  as  well  as  to  enable  the  Book-keeper 
to  prove  the  correctness  of  the  books,  by  obtaining  an  equality 
in  the  monthly  footings  of  the  Dr.  and  Cr.  sides. 

Describe  the  use  of  the  Day  Book,  or  Blotter,  in  the  various  kinds  of  busi- 
ness. How  was  this  book  formerly  used  ?  What  is  the  general  practice  at 
present  ?    Describe  the  arrangement  of  the  book. 


<  <  •  •  > 


THE  CASH  BOOK. 

This  book  contains  the  original  entries  of  Cash  transactions 
only.  On  the  left  hand,  or  Dr.  side  of  the  account,  are  entered 
all  sums  received  ;  and  on. the  right  hand,  or  Cr.  side,  all  sums 
paid  out.  These  entries  are  accompanied  with  the  dates  and 
necessary  explanations. 

More  care  is  necessary  to  keep  the  Cash  account  correctly, 
than  is  bestowed  on  any  other  account  in  the  Ledger.  This 
arises  from  the  fact,  that  the  amount  in  the  hands  of  the  Cashier 
is  fluctuating,  money  being  constantly  received  for  sales,  debts, 
&c.,  and  paid  out  for  purchases,  expenses,  &c.  Hence  arises 
the  importance  of  the  Cash  Book.     Hence,  also,  this  book,  in 


16 


BECKER'S  BOOK-KEEPING. 


THE  JOURNAL. 


17 


}      I 


actual  business,  ought  to  be  balanced  daily.  The  excess  of  the 
Dr.  side  over  the  Cr.  side,  must  agree  with  the  sum  produced 
by  adding  the  amount  of  cash  on  hand  to  the  balance  from  the 
Check  Book 

What  is  the  use  of  the  Cash  Book  1  What  are  entered  on  the  Dr.  and 
what  on  the  Cr.  side  1  Why  does  it  require  more  care  to  keep  this  book  than 
any  other  ?  How  often  should  this  book  be  balanced  1  and  how  may  the  cor- 
x«ctaess  of  the  balance  be  proved  ? 


-*  m»»  » 


THE  SALES  BOOK. 

This  book  is  one  of  original  entry,  and  in  it  are  entered  all 
sales  effected.  It  is  appropriated  exclusively  for  this  purpose. 
It  has,  generally,  four  columns;  in  the  margin,  or  first  column, 
beginning  at  the  left,  is  placed  the  folio  of  the  Journal  to  whicn 
the  entry  is  carried,  if  a  Journal  be  used.  In  our  system,  how- 
ever, the  Journal  is  dispensed  with,  and  the  entry  transferred 
directly  to  the  Ledger;  hence,  we  place  the  Ledger  folio  in  this 
column.  In  the  second  column  are  recorded  the  fiame  and 
residence  of  the  purchaser,  and  the  several  items  of  the  purchase 
in  their  order,  with  their  respective  prices.  The  third  and 
fourth  are  double  money  columns;  the  left  hand  or  inner  column 
contains  the  amount  of  each  item  of  the  entry,  and  the  sum  of 
these  amounts,  or  the  total  amount  of  the  sales  is  carried  to  the 
right  hand,  or  outer  column,  and  placed  in  such  a  position  as  to 
show  that  it  is  obtained  by  footing  the  several  items  in  the 
inner  column.  These  sums  should  be  footed  at  the  end  of  each 
page,  and  the  amount  carried  -to  the  next  page,  so  that,  at  the 
close  of  the  month's  entries,  the  grand  total  will  exhibit  the 
amount  of  sales  during  the  month. 

It  frequently  happens  that  the  purchaser  makes  payment 
after  the  sales  have  been  entered  in  the  Sales  Book,  but  before 
the  amount  has  been  carried  to  the  account  in  the  Ledger.  In 
such  cases,  the  entry  in  the  Sales  Book  may  be  marked  "  Paid," 
and  the  date  of  payment  written  in  the  margin,  and  the  amount 
entered  in  the  Cash  Book,  to  the  credit  of  Merchandise  account. 
It  is  necessary,  in  order  to  prevent  this  amount  being  carried  to 
the  Ledger  from  the  Sales  Book,  that  the  pen  (with  red  ink) 
should  be  struck  through  it.     By  following  this  plan,  the  foot- 


ing, at  the  close  of  the  month's  entries,  will  be  composed  only 
of  those  amounts  which  are  to  be  posted  to  the  Ledger.  It  is 
evident  that  this  method  is  advantageous,  inasmuch  as  it  en- 
ables us  to  dispense  with  one  posting  in  each  case  of  the  kind, 
and  where  such  cases  are  frequent,  it  undoubtedly  saves  much 
labour. 

What  is  the  use  ef  the  Sales  Book  1  Describe  its  arrangements  and  th* 
mode  of  using  it.  If  payment  be  received  for  goods,  after  their  sales  have  been 
entered  in  this  book,  what  is  to  be  done  1 


<  *•  »  » 


THE  JOURNAL. 

The  Journal  is  that  book  which  prepares  the  original  entries 
for  the  Ledger.  It  is  derived  from  the  word  jour,  a  day,  and  is 
so  called  because  it  exhibits  a  concise  statement  of  the  several 
transactions  recorded  daily  in  the  Day  Book,  or  Blotter,  Cash 
Book,  Sales  Book,  Invoice  Book,  Bill  Book,  and  other  subordi- 
nate books. 

To  prepare  correctly  the  original  entries  for  the  Ledger,  is 
manifestly  of  the  utmost  importance.  Upon  the  care  given  ta 
this  part  of  the  work  depends  the  correctness  of  the  accounts, 
because  wrong  Journal  entries  not  only  vitiate  the  Ledger,  but, 
if  they  be  numerous,  they  will  render  it  useless,  and  even  inju- 
rious. In  such  a  case,  the  double  task  of  detecting  and  correctmg 
errors,  of  making  accurate  statements,  and  removing  the  *n- 
accurate  ones  will  devolve  upon  the  Book-keeper. 

In  consequence  of  the  accuracy  necessary  to  be  attained  in 
Journalizing,  rules  have  been  laid  down  to  guide  the  siudent  in 
this  operation.  But,  before  proceeding  to  these  rules,  the  stu- 
dent should  know  that,  in  every  Journal  entry,  the  amount  on 
the  debit  side  must  be  exactly  equal  to  that  on  the  credit  side. 
As  the  process  of  transcribing,  or  rather  of  transmuting  an 
original  entry  into  a  Journal  entry  is  called  Journalizing,  so  tho 
rules  for  the  same  are  called  Fules  for  Journalizing.  We 
shall  treat  of  these  in  another  place. 

What  is  the  use  of  the  Journal  1  Why  is  it  necessary  to  prepare  correctly 
the  original  entries  for  the  Ledger  ? 

b2  3 


18 


\    II 


BECKER'S  BOOK-KEEPINO. 


THE  LEDGER. 


CLASSES,  CHARACTER,  AND  TITLES. 


19 


The  particular  use  of  this  book  renders  it  "the  principal  book 
of  reference  in  the  counting-house,  to  which  all  others  are  sub- 
servient." This  use  is  aptly  expressed  by  a  certain  author, 
when  he  calls  the  Ledger  "the  business  man's  reservoir  of  ac- 
counts," for  in  it  the  several  transactions  are  classified  and  ar- 
ranged under  distinct  heads  or  accounts,  in  order  that  the  state 
of  any  particular  department,  as  well  as  the  general  result  may 
be  readily  ascertained.  By  this  arrangement,  all  sums  belonging 
to  the  same  account  are  collected  under  one  head. 

From  these  remarks,  it  will  be  perceived  that,  in  the  Ledger, 
a  separate  account  is  kept,  not  only  with  persons  who  have 
business  transactions  with  the  merchant,  but  with  goods,  cash, 
bills,  and  all  other  species  of  property  that  may  be  the  subject 
of  those  transactions.  This  is  characteristic  of  the  double  entry 
Ledger;  and  the  advantages  of  the  latter  over  the  single  entry 
Ledger  are  well  embodied  in  the  following  remarks  which  we 
extract  from  a  work  upon  Book-keeping  by  Mr.  Foster  : 

"One  object  of  book-keeping  is  to  show  how  the  merchant's 
funds  have  been  successively  employed;  and,  as  property  is  in 
a  state  of  continual  change,  it  becomes  necessary  to  have  an 
exact  register  of  these  variations.— Another  object  is  to  show 
the  state  of  the  concern  commencing,  the  increase  or  decrease  of 
the  capital  from  time  to  time,  and  the  sources  from  which  the 
gains  and  losses  proceed.      These  objects  are  accomplished,  first, 
by  recording  the  whole  capital  collectively,  and  also  the  gains 
and  losses;  and,  secondly,  by  keeping  a  register  of  each  invest- 
ment or  speculation,  so  as  to  exhibit  the  outlay  and  returns. 
Hence,  an  account  must  be  opened,  not  only  for  every  indivi- 
dual with  whom  the  merchant  has  dealings  on  credit,  but  for 
every  species  of  property  which  forms  a  constituent  part  of  his 
capital,  or  which,  by  purchase  or  otherwise,  comes  into  his 
possession." 

What  is  the  use  of  the  Ledger?  What  accounts  besides  individual  zccomiU 
'  Are  kept  in  this  book  t 


CLASSES,  CHARACTER,  AND  TITLES  OF  ACCOUNTS. 

Accountants  are  accustomed  to  classify  the  various  accounts 
mat  occur  in  book-keeping.  A  knowledge  of  this  classification 
is,  undoubtedly,  useful,  but  it  is  not  indispensable  to  the  stu- 
dent. The  names  of  the  various  accounts,  however,  which  are 
the  subjects  of  the  classification  must  be  known  by  him  before 
he  jcan  acquire  an  accurate  and  practical  knowledge  of  Journal- 
izing, because  the  latter  process  presupposes  a  knowledge  of 
the  various  titles  under  which  transactions  are  arranged  or  an 
acquaintance  with  what  may  be  styled  the  nomenclature  of 
book-keeping.  These  titles  are  not  always  the  same;  they 
vary  with  the  nature  of  the  business. 

In  the  science  of  book-keeping  accounts  are  divided  into  two 
classes,  viz.:  Personal  and  Representative  accounts. 

FIRST  CLASS. 

Personal  Accounts  are  those  kept  with  the  individual  with 
whom  the  merchant  has  business  transactions,  and,  with  the  ex- 
ception of  cash  accounts,  they  are  the  only  accounts  kept  in  a 
system  of  book-keeping  by  single  entry.  The  following  are  the 
titles  and  character  of  the  principal  accounts  of  this  kind: 


I  i 


Character. 

The  sales  or  purchase  of  pro- 
perty on  a  credit  usually  termed 
on  trust  or  on  open  account. 

Accounts  current  of  another 
person's  affairs  transacted  by 
me  as  his  agent. 

Accounts  current  of  my  af- 
fairs transacted  by  another  as 
my  agent  or  factor. 

Accounts  with  a*factor  for  a 
company  under  my  direction. 


Titles. 

These  accounts  are  numer- 
ous, but  should  always  be  re- 
presented by  the  name  of  the 
individual  or  firm,  or  the  legal 
name  of  the  company ;  as,  James 
Milnor,  Wood  &  Jones,  United 
States,  Atlantic  Insurance  Co. 


*  I 


20 


r  I 


BECKER'S  BOOH-KEBFlNa 


SECOND  CLASS. 


Representative  accounts  constitute  the  basis  of  the  science, 
and  they  may  be  subdivided  into  two  classes,  viz.: 

1.  Those  which  arise  from  effects  or  property. 

2.  Those  which  are  constituted  by  gains  or  losses. 

The  character  and  titles  of  these  accounts  are  given  in  thu 
following  catalogues: 

« 


FIRST  SUBDIVISION. 

Character.  Titles. 

1.  Specie  and  Bank  Notes.  Cash. 

2.  Wares  in  my  own  hands  and  > 

on  my  own  account.  3  Merchandise. 

3.  Wares  on  Commission  in  my  ]  Sales  No.  1,  2,  &c.,  or,  such  a 

hands  for  another  person's  )■     man's    (naming    him)   con- 
account.  J      signment. 

4.  Wares  under  my  direction  >  Merchandise  in  Co.  with  A  B 

for  myself  and  others.        5      or  Sales  No.  3,  4,  &c. 

'Adventure     No.     1,     2,    &c., 


5.  Wares  consigned  to  an  agent 
on  my  account.  ^ 


(Boston.) 
Shipment  No.  1, 2,  &c.,  (Liver- 
pool.) 

6.  Stock  or  share  in  corporate  f  ^^^^  ^  company's  (naming  the 
companies.  '\      C^- )  Stock ;  as,  Reading  Rail- 

(^     road  Stock, 

{Ship  Providence,  Brig  Ocean, 
Schooner  Helen,  Steamboat 
York,  or  whatever  may  be 
the  name  of  the  vessel. 

a  Houses  and  Lands.  5  ^^^^  Estate  or  House  and  Lot 

i     in  such  a  place. 
9.  House-furniture  and  mov- 


able property  of  every  de- 
scription. 

10.  All  obligations,  such  as 
Bills  of  Exchange,  Drafts, 
Bonds,  Bottomry  Con- 
tracts, Promissory  Notes, 
&c.,  which  are  payable  to 
me  or  to  my  order. 


Movables. 


Bills  Receivable. 


CLASSES,  CHARACTER,  AND  TITLES. 


21 


11.  All  obligations  of  the  same 

description,  Acceptances,  ^  Bills  Payable. 
&c.,  payable  by  me. 


'I 


SECOND  SUBDIVISION. 


Character. 

1.  The  name  of  the  merchant.     Stock. 

2.  The    general     account 


Titles. 


or. 


Profit  and  Loss. 


gains  and  losses. 

S.  The  expense  of  his  house?  „         „ 

or  pocket.  5  House  Expense. 

4.  The  particular  expense  of 

store. 

5.  The  compensation  or  gain 

which  a  person  has  as  fac- 
tor or  agent  for  another. 

S.  The  gain  or  loss  of  an  iridi-^ 
vidual  or  a  corporate  com- 
pany    by     insuring     for 
others. 

7.  The  gain  or  loss  by  Interest  >  Interest,  or  Discount  and  Ift- 

or  Discount.  3      terest. 

8.  The  gain  or  loss  by  exchange.     Exchange. 

9.  An   account  of  Drafts  and1 

remittances     between     a 


'7 

f  Expense. 


Commission. 


>  Insurance. 


merchant  and  a  corres- 
pondent with  whom  he 
divides  the  gains  and  losses 
by  exchange. 


John  Durand's  Exchange  ac- 
count in  Co.,  or  Exchange 
account  with  John  Durand. 


How  are  accounts  divided?  What  are  personal  accounts?  Describe  the 
various  kinds  of  personal  accounts,  and  give  the  title  of  each  one.*  How  are 
representative  accounts  divided  ?  Describe  those  under  the  first  subdivision,  and 
pre  the  title  of  each.*  Do  the  same  with  those  under  the  second  subdivision.* 


The  teacher  should  describe  the  character  of  each  of  these  accounts,  and  requiw 
the  pupils  to  give  the  name  by  which  it  is  known,  or  he  may  adopt  the  opposite 
method. 


> 


> 


22  BECKER'S  BOOK-KEEPING. 


ACCOUNTS. 

The  phrase  **to  open  an  account"  is  of  such  frequent  use  m 
the  science  of  book-keeping,  that  an  acquaintance  with  ita 
meaning,  as  well  as  that  of  the  term  account  is  necessary. 

An  account  is  a  record  of  the  business  relations  existing  be- 
tween a  concern  and  the  persons  with  whom  it  has  dealings,  or 
of  the  connexion  or  relation  which  may  be  said  to  exist  among 
the  various  kinds  of  property  and  that  existing  between  them 
and  the  capital  of  a  concern.  The  student  will  be  better  enabled 
to  understand  this  definition  when  he  shall  have  become  familiar 
with  the  names  and  uses  of  the  various  accounts.  A  more  com 
pact  definition  than  that  which  we  have  given  may  be  found  in 
the  following  extract  from  Foster's  work  on  Book-keeping: 

"A  statement  of  all  the  facts  relative  to  any  person  or  thing, 
by  which  the  capital  of  a  concern  has  been  effected,  is  techni 
cally  called  an  account.^' 

Each  account  consists  of  two  distinct  parts,  the  page  or  folio 
containing  the  account  being  divided  vertically;  the  left-hand 
column  is  denominated  the  debtor,  and  the  right  hand  column 
the  creditor  side. 

"  To  open  an  account^'  signifies  to  enter  its  title  for  tne  first 
time  in  the  Ledger.  When  the  accounts  are  opened,  the 
Ledger  is  ready  for  receiving  the  various  entries  which  are  to  be 
transferred  from  the  Journal  or  other  books  to  their  respective 
accounts.     This  transfer  is  caWed  posting. 

Items  may  be  posted  from  the  books  of  original  entry,  with 
as  much  facility,  and  as  little  liability  to  error,  as  when  the 
Journal  operates  as  a  conveyance  to  the  Ledger,  of  the  trans- 
actions recorded  in  the  Day  Books  appropriated  for  each  branch 
of  a  business.  The  third  series  of  books  which  we  give  is  con- 
ducted upon  a  plan  derived  from  this  suggestion. 

What  is  an  account!   Of  what  two  part*  Joes  each  account  consist!   What 
!■  meant  by  the  phrase  "  to  open  an  account !" 


EXPLANATION  OF  ACCOUNTS. 


EXPLANATION  OF  ACCOUNTS  IN  THE  LEDGER,  WITH  THE 
RULES  FOR  OPENING  AND  CLOSING  THEM. 


Dr. 


Slock. 


Cr. 


Stock  represents  the  trading  capital  of  the  merchant  or  person 
in  whose  name,  or  for  whose  particular  benefit  the  books  are 
conducted. 

The  object  of  this  account  is  to  exhibit  the  assets  and  liabili 
ties  in  one  mass. 


The  amount  of  the  person's 
liabilities  or  debts,  if  there  be 
any,  in  starting  business,  and 
the  amount  drawn  out  since, 
are  entered  in  the  left  hand 
money  column,  or  Dr.  side. 


The  amount  of  his  resources y 
or  the  effects  which  he  puts 
into  trade  in  starting,  and  the 
amount  brought  into  business 
since,  if  there  be  any,  are  en- 
tered in  the  right  hand  money 
column,  or  Cr.  side. 


This  account  is  closed  "To"  or  "By  Balance."  If,  after  re 
ceiving  the  balance  of  Profit  and  Loss  account,  the  Cr.  side^  b€ 
the  greater,  it  is  closed  "To  Balance"  for  the  excess  of  the  Cr. 
side  over  the  Dr.,  which  is  the  net  capital  of  the  concern.  If, 
however,  the  Dr.  side  exceed  the  Cr.,  the  account  is  closed  "  By 
Balance"  for  the  excess,  in  which  case  the  concern  is  evidently 
insolvent ;  the  difference  between  the  two  sides  representing  the 
amount  of  deficiency. 

NoTK. — ^In  Copartnership  budness  the  individual  accounts  of  those  forming  the 
concern  are  substituted  for  Stock  account,  each  partner  being  credited  for  the  amount 
of  his  investment. 

What  is  the  object  of  Stock  Account !  What  are  placed  on  the  Dr..  and 
what  on  the  Cr.  side  !     How  is  this  account  closed  ? 

[The  teacher  should  proceed  to  ask  the  same  questions  on  each  of  the  ■»» 
ooonts  described  in  this  article.] 


» 


il 


it 


I 


i 


24 


BECKER'S  BOOK-KEEPING. 


Br. 


Cash, 


Cr. 


The  object  of  this  account  is  to  show  the  amount  of  Cash 
taken  in,  the  amount  paid  out,  and  the  balance  on  hand. 


The  Cash  in  hand,  when  the 
books  are  opened,  and  all  sums 
received  are  entered  on  the  Dr. 
side,  and 


The  disbursements,  or  sums 
of  money  paid  out,  are  entered 
on  the  Cr.  side. 


This  account  is  closed  with  "Balance"  for  the  difference  be- 
tween  the  two  sides,  and,  as  Cash  must  be  received  before  it 
can  be  paid  out,  the  Dr.  side  will  be  the  larger,  while  any  cash 
remains  on  hand;  hence,  it  must  always  be  closed  "By  Balance. 


» 


JDr. 


Merchandise. 


Cr. 


The  object  of  this  account  is  to  show  the  cost  of  the  merchant's 
stock  of  goods,  the  amount  of  the  sales,  and  the  gain  or  loss  on 
the  same. 


The  amount  of  the  sales  of 
goods  are  entered  on  the  Cr, 
side. 


The  value  of  goods  on  hand 
on  commencing  business,  and 
the  cost  of  those  purchased 
afterwards,  including  charges 
attending  the  receipt  of  the 
same,  are  entered  on  the  Dr. 
side;  and 


This  account  is  closed  "By  Balance"  for  the  value  of  the 
goods  unsold.  When  this  balance  has  been  added  to  the  Cr. 
side,  if  the  Dr.  side  be  the  larger,  the  account  is  closed  "By 
Profit  and  Loss"  for  the  difference  which  is  the  amount  of  loss 
on  the  account;  but,  if  the  Cr.  side  be  the  larger,  it  is  closed  "To 
Profit  and  Loss"  for  the  difference,  which  is  the  amount  oigain. 


EXPLANATION  OP  ACCOUNTS. 


25 


Dr. 


Bills  Receivable. 


Cr. 


The  object  of  this  account  is  to  show  the  amount  of  Notes, 
Bills,  and  Bonds  received,  the  amount  of  those  that  have  been 
paid  or  passed  away,  and  the  balance  yet  unpaid. 


The  amount  of  Notes,  &c.,  on 
hand  at  the  commencement, 
and  all  Notes,  Bonds  and  ac- 
ceptances that  have  been  re- 
leived,  are  entered  on  the  Dr. 
sideybr  the  amount  on  the  face 
of  them;  and 


The  amount  on  the  face  of 
every  bill  disposed  of,  or  for 
which  payment  has  been  re- 
ceived, is  entered  on  the  Cr. 
side. 


This  account  naturally  closes  of  itself ;  but,  if  the  bills  be  not 
all  paid,  it  is  closed  "  By  Balance,"  for  the  amount  of  those  re- 
maining on  hand  unpaid. 

Note. — Should  a  note  not  be  exonerated  at  maturity,  if  it  is  not  believed  to  be  a 
total  loss,  it  should  be  charged  in  account  to  the  drawer  or  maker  of  the  note,  with  all 
the  expenses  for  protest,  &c :  but,  if  it  be  a  total  loss,  Profit  and  Loss  must  be  debited. 
(n  both  cases,  Bills  Receivable  must  be  credited  for  the  face  of  the  note. 


Dr. 


Bills  Payable. 


Cr. 


The  object  of  this  account  is  to  show,  first,  the  amount  of  the 
merchant's  notes  passed  to  others,  and  the  drafts  of  other  per- 
sons which  he  has  accepted;  secondly,  the  amount  of  the  notes 
taken  up  or  paid;  and,  thirdly,  the  amount  remaining  out 
unpaid. 


The  amount  of  all  bills  or  ac- 
ceptances which  are  paid  or 
withdrawn  from  circulation, 
are  entered  on  the  Dr.  side. 


The  amount  of  Nctes,  Bonds, 
and  acceptances  issued,  and  of 
those  unredeemed  at  the  com- 
mencement, are  entered  on  the 
Cr.  side;  and 


This  account,  like  Bills  Receivable,  naturally  closes  of  itself. 
If  there  be  any  difference  between  the  sides,  it  indicates  the 
amount  owed  by  the  merchant  in  notes  or  acceptances.     It  is, 
therefore,  always  closed  "  To  Balance." 
C  4 


Vl 


* 


BECKER'S  BOOK-KEEPING. 


Dr. 


Personal  Accounts. 


Cr. 


These  accounts  are  numerous,  and  are  known  by  the  namei 
of  the  respective  individuals,  firms,  or  companies. 

The  object  of  such  accounts  is  to  show  the  amount  owed  iy 
the  merchant  to  the  individual,  firm,  or  company  whose  name 
heads  the  account,  or  the  amount  due  him  by  the  same  party. 


The  amounts  in  which  the 
party  heading  the  account  is 
indebted  to  the  merchant,* 
whether  it  be  for  goods  sold 
him  or  them  on  trust,  for  pay- 
ment or  allowance  made,  for 
the  merchant's  notes  and  bills 
drawn  upon  others,  are  entered 
on  the  Dr.  side.  In  the  books 
of  mechanics  and  professional 
men,  the  amount  due  by  the 
party  for  work  done  or  services 
rendered,  is  also  entered  upon 
the  Dr.  side. 


The  amounts  in  which  the 
merchant  is  indebted  to  the 
party,  whether  it  be  for  cash 
received,  for  value  of  the  goods 
received  on  account,  for  com- 
pensation, or  otherwise,  are 
entered  on  the  Cr.  side. 


These  accounts  are  closed  into  "  Balance"  for  the  difference 
between  both  sides,  and  the  balance  indicates  the  debts  of  the 
individual,  &c.,  to  the  concern  or  the  debts  of  the  concern  to 
him. 


Beal  Estate^  Ship^  Railroad  Stocky  Bank  Stock,  or 
Dr.  any  other  Speculation  Account.  Cr. 


The  object  of  these  accounts  is  to  show,  first,  the  value  or 
cost  of  the  Real  Estate,  Ship,  &c. ;  secondly,  the  returns  that 
may  be  received  from  them;  and  thirdly,  the  gain  or  loss  that 
may  arise  from  their  sale. 


•  The  word  merekemt  is  in  this  article  used  as  a  representative  of  the  differvul 
dasBes  of  persons  who  are  accustomed  to  keep  accounts.  By  using  it,  it  is  not  ii»> 
tended  to  conrey  the  idea  that  the  mechanic  or  professional  man  may  not  keep  the#^ 
■ecoiinUk 


EXPLANATION  OF  ACCOUNTS. 


27 


The  amount  which  it  has 
brought  (if  sold)  and  the  amount 
of  rent,  freight,  dividend,  &c., 
are  entered  on  the  Cr.  side. 


The  estimated  value  of  the 
property,  when  the  books  are 
opened  and  the  cost  or  value 
of  any  that  may  be  afterwards 
acquired,  either  by  purchase 
or  bequest,  together  with  the 
charges  on  the  same,  are  entered 
on  the  Dr.  side ;  and 

These  accounts  are  closed  in  the  same  manner  as  Merchan- 
dise, which  see. 


Dr. 


Profit  and  Loss. 


Cr. 


The  object  of  this  account  is  to  show  the  gains  or  losses  in 
business. 


The  several  items  of  gain  that 
may  arise  from  time  to  time,  on 
different  accounts,  such  as  Ex- 
change, Discount  and  Interest, 
Commission,  Merchandise,  or 
any  speculation  account,  are 
entered  on  the  Cr.  side. 


The  several  items  of  loss 
that  may  arise  from  time  to 
time,  on  different  accounts, 
such  as  Expense,  Discount  and 
Interest,  Merchandise,  or  any 
other  speculation  account,  are 
entered  on  the  Dr.  side;  and 

This  account,  at  the  general  balance,  is  closed  into  "  Stock"  for 
the  difference  between  the  two  sides,  which  is  the  net  gain  or 
loss  as  the  case  may  be. 

In  Copartnership  this  account  is  closed  "  To"  or  "  By"  each 
partner's  individual  accoimt  for  his  respective  share  of  the  gain 
or  loss  in  the  business. 


Discount,  Interest,  Exchange,  Brokerage, 
Br.  Premium,  S^c.  Cr. 


These  accounts  are  branches  or  subdivisions  of  "Profit  and 
Loss,"  and  they  may  be  kept  under  one  head,  as  Interest,  or 
Discount  and  Interest,  &c. 

Their  object  is  to  show  the  amounts  received  and  those  paid 
under  these  several  heads,  and  the  gains  or  losses  under  th# 
same. 


88 


BECKER'S  BOOK-KEEPING. 


All  sums  for  the  like  allowed 
him  by  others,  are  entered  on 
the  Cr.  side. 


The  discount  on  all  notes, 
bonds,  and  acceptances  of  other 
persons  which  the  merchant 
has  had  discounted,  the  inte- 
rest which  he  pays  upon  his 
own  notes  and  for  the  use  of 
money  and  goods  of  any  kind, 
sums  which  he  allows  on  Book 
accounts,  or  on  accounts-cur- 
rent, and  losses  on  bills  of  ex- 
change, are  entered  on  the  Dr. 
side;  and 


The  accounts  are  closed  into  "  Profit  and  Loss"  for  the  diflfet- 
ence  between  the  sides,  which  represents  the  gain  or  loss. 


I>r. 


Expense. 


Cr. 


The  object  of  this  account  is  to  show  the  aggregate  amount 
of  expense  incidentally  incurred  in  carrying  on  a  business. 


All  sums  paid  for  carrying 
on  a  business,  whether  they  be 
for  clerk  hire,  store  rent,  cart- 
age, labour  of  any  kind,  postage, 
stationery,  or  advertising,  are 
entered  on  the  Dr.  side ;  and 


All  sums  allowed  the  mer- 
chant by  others,  and  which 
have  been  previously  disposed 
of  as  an  expense  to  him,  ar« 
entered  on  the  Cr.  side. 


This  account  is  a  branch  of  Profit  and  Loss,  and  is  closed  "  By 
Profit  and  Loss." 

NoTB.  When  it  is  desirable  to  keep  the  Store  Expenses  distinct  from  the  general 
Expense  account,  an  account  called  «  Store  Expenses"  or  «  Charges — MerchandiM** 
may  be  opened. 


Dr, 


Commission. 


Cr. 


The  object  of  this  account  is  to  collect  under  one  head  all 
bums  received  for  transacting  business  for  others  as  their  agent 
or  factor. 


EXPLANATION  OP  ACCOUNTS. 


29 


On  the  Dr.  side  no  entries  l      The  amount  or  per  centage 
are  made  except  for  the  purpose  I  allowed   the  merchant  on  the 


of  closing  the  account. 


sales  of  intrusted  goods  or  other 
property,  and  on  purchases  for 
another  person's  account,  are 
entered  on  the  Cr.  side. 


The  account  is  closed  "To  Profit  and  Loss"  for  the  amount 
of  the  Cr.  side,  the  same  being  gain. 


Dr. 


Chiarantee. 


Cr. 


The  object  of  this  account  is  to  show  the  gain  or  loss  in 
guarantying  conmiission  sales,  or  the  performance  of  stipula* 
tions  of  another. 


All  sums  in  which  he  is 
pledged  for  the  performance  of 
stipulations  made  by  another 
and  not  redeemed  at  maturity 
are  entered  on  the  Dr.  side. 


All  sums  allowed  the  mer- 
chant by  others  for  guaranty- 
ing commission  sales,  for  the 
payment  of  another  indivi- 
dual's notes,  &c.,  are  entered  on 
the  Cr.  side. 


This  account  is  closed  into  "Profit  and  Loss." 


Dr. 


Loan  or  Borrowed  and  Lent. 


Cr. 


The  object  of  this  account  is  to  show  the  amount  of  money 
borrowed  or  lent  for  a  few  days. 


All  sums  loaned  to  others  to 
be  refunded  in  a  short  time,  and 
all  sums  refunded  by  the  mer- 
chant, the  same  having  been 
borrowed,  and  placed  to  the 
credit  of  this  account,  when  ob- 
tained, are  entered  on  the  Dr. 
tide;  and 


All  sums  refunded  to  tha 
merchant,  being  for  loan  made 
to  others  and  charged  to  this 
account  as  such,  and  all  sums 
borrowed  by  him,  are  entered 
on  the  Cr.  side. 


This  account  naturally  closes  of  itself;  but,  if  the  Dr.  exceed 
Uie  Or.  side,  it  is  closed  "By  Balance"  for^he  difference,  which 


f 


I 


BECKER'S  BOOK-KEEPING. 

is  the  amount  ot  money  loaned  to  others  and  not  refunded;  and 
if  the  Cr.  exceed  the  Dr.  side,  it  is  closed  "To  Balance''  for  the 
difference,  which  denotes  the  amount  borrowed  and  still  due. 

When  both  sides  of  this  account  are  open,  it  is  closed  with  9 
a  double  Balance  for  money  borrowed  and  lent. 


Dr. 


Suspense. 


Cr. 


The  object  of  this  account  is  to  show,  first,  the  amounts  which 
for  an  uncertain  and  undefined  purpose  have  been  withdrawn 
from  business;  secondly,  all  sums  received  by  a  commission 
merchant  for  goods  sold,  to  which,  from  accident  or  carlessness, 
he  is  unable  to  assign  an  owner. 


The  amount  of  cash  or  value 
of  other  property  withdrawn 
for  an  uncertain  and  undefined 
purpose,  are  entered  on  the  Dr. 
side;  and 


When  the  owner  of  the  goods 
appears,  the  amount  is  entered 
on  the  Dr.  side. 


When  the  object  is  defined, 
for  which  cash  or  other  pro- 
perty is  withdrawn,  the  amount 
as  per  Dr.  side  is  entered  on  the 
Cr.  side. 


The  net  proceeds  or  value 
of  goods  sold,  to  which,  from 
accident  or  carelessness,  the 
merchant  is  unable  to  assign 
an  owner,  are  entered  on  the 
Cr.  side ;  and 


The  account  is  closed  into  "Balance." 


The  object  of  this  account  is  to  prevent  the  necessity  of  open- 
ing many  small  accounts  with  individuals  with  whom  it  is  not 
expected  to  have  a  running  account. 


When  payment  is  made  by 
him,  the  amount  of  the  same  is 
entered  on  the  Dr.  side,  without 
regard  to  priority  of  date,  and 
on  the  line  opposite  to  which 
the  credit  was  first  entered. 


The  sums  in  which  the  mer- 
chant is  indebted  to  an  indivi- 
dual with  whom  he  keeps  no 
running  account,  are  entered 
on  the  Cr.  side ;  and 


EXPLANATION  OF  ACCOUNTS.  gi 

Each  name  on  the  Cr.  side  represents  a  distinct  account,  and 
if  the  latter  be  not  found  closed  at  the  general  Balance,  it  is 
closed  "  To  Balance"  for  the  amount  still  due. 


Dr.      Debts  Receivable,  or  Sundry  Debtors.      Cr. 


The  object  of  this  account  is  the  same  as  that  of  the  preceding 

.'Jh  '""!k  '"  which  an  indi- ,  When  he  receives  payment, 
vidua,  with  whom  the  mer-  the  amount  of  the  same  is 
chantkeeps  no  running  account,  entered  on  the  Cr.  side,  and  on 
IS  indebted  to  him,  are  entered  {the  same  line  as  that  on  which 
on  the  Dr.  side ;  and  I  the  corresponding  debit  is  en 

I  tered. 

The    account   is   closed   "By  Balance''   for   the  respective 
amount  of  each  individual's  account. 


Dr.      Sales  No.  \,  or  A.  B's.  Consignment.      Cr. 


The  object  of  this  account  is  to  show  the  net  proceeds  of  A. 
B's.  consignment. 


AH  charges  incurred  on  re- 
ceiving the  goods,  such  as 
freight,  duty,  cartage,  &c.,  and 
^  all  abatements  made  for  de- 
fects in  wares  are  entered  on 
the  Dr.  side;  and 


The  amounts  of  all  sales  of 
consignments  are  entered  on 
the  Cr.  side. 


If  the  goods  be  all  disposed  of,  this  account  is  closed  "  To 
Expense"  for  the  after  charges,  if  there  be  any,  such  as  labour, 
storage,  postage,  advertising,  &c. 

"  To  Commission,"*  for  the  merchant's  commission  on  the 
total  sales; 

«  To  Guarantee,"t  (if  any  be  allowed)  for  the  risk  on  tl  e 
amount  of  goods  sold  on  time ;  and 
*^To  A.  B,"  the  consigner,  for  the  net  proceeds  due  him. 

^^On  domestic  sales,  the  commission  is  2^  per  cent,  and  on  foreign  sales,  6  p. 
tThe  guaianti^e  is  2|  per  cent 


I 


♦ 

lui,, 
W 


^^, 


h 


32 


BECKER'S  BOOK-KEEPING. 


If  payment  be  made  to  A.  B.,  when  the  account  sales  is  ren« 
dcred,  instead  of  the  latter  entry,  we  say, 

"To  Cash,"  or  the  account  which  pays  him. 

If  at  the  general  balancing  of  accounts  the  goods  be  not  all 
sold,  and  no  account  sales  be  required,  the  account  is  closed 
''  To'.'  or  **  By  Balance. 


Br. 


Mventure  No.  1.  {London.) 


Cr. 


The  object  of  this  account  is  to  show,  first,  the  cost  of,  and 
charges  on,  goods  intrusted  to  a  commission  house  at  home,  to 
sell  for  the  consignor's  account  and  risk,  or  shipped  abroad  on 
consignment;  secondly,  the  net  proceeds  of  the  sales,  or  the 
amount  due  the  consignor  by  the  commission  merchant,  after  de- 
ducting  his  charges;  thirdly,  the  gain  or  loss  arising  from  the 
adventure. 


The  cost  of  the  goods  and 
all  charges  on  the  same  are 
entered  on  the  Dr.  side ;  and 


The  returns  or  net  proceeds 
are  entered  on  the  Cr.  side. 


If  the  owner  of  the  goods  has  received  an  account  sales  of  the 
whole  adventure,  the  account  is  closed'^ To"  or  "By  Profit 
and  Loss,"  according  as  the  Cr.  or  Dr.  side  is  the  larger. 

If  he  has  received  an  account  sales  of  part  only,  the  account 
is  closed  "  By  Balance"  for  the  value  of  the  goods  remaining  t 
unsold  in  the  factor's  hand ;  and  "  To"  or  "  By  Profit  and  Loss," 
for  the  diflference  between  the  two  sides,  which  denotes  the  gain 
or  loss  on  the  goods,  for  which  an  accoimt  sales  has  been 
received. 

If  no  account  sales  has  been  received  at  the  time  of  closing, 

the  account  must  be  credited  "  By  Balance"  for  the  amount  of 

(tie  Dr.  side,  which  is  the  value  of  the  goods  in  the  factor's 
hand. 


EXPLANATION  OF  ACCOUNTS. 


33 


Mventure  in  Co.  with  A.  B.,  or  Shipment  in  Co. 
^r.  with  A.  B.  Cr. 


The  object  of  this  account  is  to  show,  first,  the  adventurer's 
share  of  the  cost  and  charges  of  the  shipment;  secondly,  his 
share  of  the  net  proceeds;  thirdly,  the  proportion  of  the  gain 
to  be  received,  or  of  the  loss  to  be  borne  by  him. 

.mmimnfrr''^    ^^^-  '°'*    ^'1      ^'^   ^^^^^   «f  ^he  net  pro- 

rZ  Dr  c^'     ''^!?'''  "^'^'"^    """^^  ^^  '^^  «^1^«  i«  entered  on 
on  the  Dr  side;  and  |  the  Cr.  side. 

This  account  is  closed  "To"  or  "By  Profit  and  Loss"  if  an 
account  sales  be  received;  but  if  none  be  received,  at  the  gene- 
ral closing  of  the  books,  "  By  Balance"  for  the  amount  of  the 
Dr.  side. 


Dr. 


Insurance. 


Cr. 


The  object  of  this  account  is  to  show  the  gains  or  losses  by 
insuring  for  others.  ^ 


All  sums  insured  which  the 
insurer  is  obliged  to  pay  are 
entered  on  the  Dr.  side;  and 


The  premiums  which  he  has 
charged  for  insuring  houses, 
ships,  merchandise,  &c.,  are 
entered  on  the  Cr.  side. 


This  account  is  closed  into  Profit  and  Loss. 


Merchandise  in  Co.  and  other  Speculation 
^^'  Accounts  in  Co.  r, 


irahls'jT"  °^  '^''^^^<^onms  is  to  show  what  the  merchant 
gams  or  loses  m  each  Co.  speculation  of  which  he  has  the 


1 


l'{ 


34 


BECKER'S  BOOK-KEEPING. 


The  amjiint  of  the  mer- 
chant's share  of  the  cost  or  in- 
vestment, and  the  charges  and 
expenses  paid  by  him,  are  en- 
tered on  the  Dr.  side ;  and 


The  amount  of  the  com 
pany's  goods  sold  are  entered 
on  the  Cr.  side. 


On  making  up  this  account  it  is  debited 
«  To  Expense"  for  the  after  charges,  if  there  be  any ; 
"  To  Commission"  for  the  manager's  commission  {2\  per  cent 

or  as  per  agreement)  on  the  total  proceeds,  for  selling;  and 
<<  To  A.  B.  and  C.  D.,"  the  other  individuals  of  the  Co.,  each 
for  their  share  of  the  net  proceeds. 

After  the  above  entries  have  been  made,  the  difference  be- 
tween the  two  sides  will  be  the  gain  or  loss  in  the  Co.,  accruing 
to  the  partner  who  manages  the  business,  and  the  account  will 
be  closed  '*  To"  or  «  By  Profit  and  Loss." 


Dr.    Intrusted  Real  Estate^  Stocks^  Bonds^S^'C.  Cr, 


The  individual  for  whom  one  holds  intrusted  real  estate, 
Btocks,  bonds,  or  property  of  any  description,  must  generally  be 
tredifed  for  its  value,  when  it  comes  into  his  possession,  and 
debited  when  it  passes  from  his  control. 

The  object  of  these  accounts  is  to  show  the  value  of  such 
property  as  is  held  in  trust  for  others,  and  the  amount  which  it 
produces  whilst  under  one's  control. 


All  returns  or  net  proceeds 
are  entered  on  the  Cr.  side. 


The  value  of  intrusted  real 
estate,  stocks,  bonds,  &c.  at  the 
time  they  come  into  one's  pos- 
session, and  all  charges  and  ex- 
penses, attending  the  same,  are 
entered  on  the  Dr.  side. 

Accounts  of  this  kind,  if  not  found  closed  on  settling  the  books, 
are  closed  "By  Balance"  for  the  value  of  the  property  still  held 
in  trust.  The  difference  between  the  sides  will  denote  the  gain 
or  loss  on  the  account,  and  the  account  will  be  closed  "To"  or 
«B/"  the  individual  or  individuals  for  whom  the  trustee  holds 
said  real  estate,  &c.,  in  trust. 


EXPLANATION  OF  ACCOUNTS. 


35 


Dr.       Exchange  account  in  Co.  with  Jl.  B.     Cr, 

On  receiving  Drafts  or  Bills  of  Exchange  as  a  remittance  on 
joint  interest  and  account  with  a  correspondent,  "Bills  Re- 
ceivable" is  debited  for  the  face  of  the  Bill,  and  "Exchange 
Account  in  Co."  for  the  premium,  and  A.  B.  (the  correspondent) 
is  credited  for  the  same. 

If  the  merchant  be  the  remitter,  A.  B.  is  debited  for  the  Bill 
and  premium,  and  the  account  or  accounts  from  which  they 
emanated  are  credited. 

The  object  of  this  account  is  to  ascertain  the  gains  or  losses 
Dy  exchange  on  mutual  Drafts  and  remittances  between  two 
persons.  • 


All  premiums  paid  by  the 
correspondent  on  Bills  remitted 
to  be  sold  for  mutual  benefit, 
and  all  discount  allowed  on  the 
same  to  others,  are  entered  on 
the  Dr.  sidej  and 


All  premiums  received  on 
Bills  when  disposed  of,  and  all 
discounts  allowed  on  Bills  to 
the  correspondent  on  purchas- 
ing the  same,  are  entered  on 
I  the  Cr.  side. 


The  difference  between  the  sides  is  the  net  gain  or  loss,  as  the 
case  may  be.  On  rendering  an  account-current  to  the  corres- 
pondent, this  account  is  closed  "To"  or  "By  A.  B."  for  his 
share  of  the  net  gain  or  loss,  and  "To"  or  "By  Profit  and 
Loss"  for  the  share  of  the  net  gain  or  loss  by  exchange,  accru- 
ing to  the  other  party. 


BALANCE. 

"  This  account  is  usually  opened  when  the  Book-keeper  is 
prepared  to  close  the  books,  and  intends  transferring  the  ac- 
counts to  a  new  Ledger,  and  to  it  all  accounts  not  otherwise 
disposed  of  are  closed."  The  process  is  as  follows  :  "  The  ba- 
lances are  copied  from  the  'Balance  Sheet'  into  the  Day  Book; 
thence  they  are  conducted  to  the  Journal,  and  condensed  in  the 
Ledger  under  the  caption  of  Balance  Account.  There  they  are 
not  permitted  to  remain,  but  are  reconducted  by  the  same  route 
to  the  same  places  whence  they  proceeded,  where,  after  a  long 
and  tedious  pilgrimage,  they  may  rest  till  another  periodical 


% 


BECKER'S  BOOK-KEEPING. 


EXPLANATION  OF  ACCOUNTS. 


37 


I 


journey  is  contemplated."  We  would  propose  a  plan  wliich  we 
believe  to  be  better  than  the  above — one  which  can  be  more 
readily  understood,  and  which  is  more  generally  adopted  by  ac- 
countants, than  the  one  already  described. 

When  the  Ledger  is  filled,  the  accounts  which  exhibit  ba- 
lances  may  be  transferred  before  the  close  of  the  year  or  the 
regular  period  of  balancing  the  accounts;  that  is,  they  may  be 
transferred  without  previously  closing  accounts  for  the  gains  or 
losses  in  the  business.  Having  ascertained,  by  means  of  the 
"  Trial  Balance,"  that  the  Ledger  has  been  correctly  posted,  or 
at  least  that  the  amounts  of  both  sides  agree,  a  "Balance  Sheet" 
must  be  drawn,  and  for  this  purpose  the  Book-keeper  should 
rule  a  sheet  of  paper  in  the  form  of  Dr.  and  Cr.  with  money  and 
folio  columns,  and  head  it  as  in  the  following  sample: 

Bt,   Balance  Sheets  or  Transfer  Balance  Sheet.   Cr. 


1     T^ger  Folio.    1 

On  the  left  hand  side  are 
placed  all  the  Dr.  balances, 
or  the  amounts  necessary 
to  balance  the  Cr.  side  of 
the  various  accounts. 

1 

1 

1 

On  the  right  hand  side 
are  placed  all  the  Cr.  bal- 
ances, or  the  amounts  ne- 
cessary to  balance  the  Dr. 
side  of  the  various  accounts. 

T 

The  difference  is  equal  to  the  balance  of  "Stock  Account," 
with  which  the  Balance  Sheet  is  closed. 

Having  done  this  the  next  step  is  to  commence  the  process  of 

Tram/erring  Accounts  from  the  Old  to  the  New  Ledger, 

The  new  Ledger  should  be  arranged  in  the  following  order. 
One  third  or  one  fourth  of  it  shou.d  be  appropriated  for  those 
accounts  which  are  of  a  primary  nature,  and  which  ought  to  oc- 
cupy the  first  part  of  the  Ledger.  These  accounts  are  Stock,  or 
the  names  of  the  persons  who  compose  the  partnership,  Cash, 
Bills  Receivable,  Bills  Payable,  Profit  and  Loss,  and  its  branches, 
Merchandise  and  its  branches,  and  speculations  and  consign- 
ments, if  there  be  any.  After  these  should  follow  the  personal 
accounts.  Of  these  there  should  be  placed,  first,  the  city  custom- 
ers of  the  merchant,  next,  those  who  reside  in  the  state  in  which* 
he  lives,  and  after  these,  those  of  other  states  and  countries, 
allowing  for  each  division  sufficient  room  for  new  accounts  or 


transfers.  The  number  of  pages  required  for  each  of  these 
divisions  may  be  ascertained  from  the  old  Ledger;  or  if  it  be  the 
first  Ledger  opened  in  a  concern,  the  nature  of  the  business  will, 
to  some  extent,  assist  in  making  these  arrangements. 

Havmg  made  these  divisions,  and  numbered  the  pages  in  the 
Ledger,  the  transferring  of  the  accounts  into  the  new  Ledger, 
should  be  commenced,  the  accountant  placing  the  old  Ledger  on 
his  left  hand  side,  and  the  new  Ledger  on  his  right  hand  side, 
and  the  Balance  Sheet  in  front  of  him  on  the  desk  or  table. 

It  is  unimportant  whether  he  begin  with  the  titles  ot  the  Dr. 
3r  those  of  the  Cr.  balances  first.  If  the  work  be  commenced 
with  the  account  which  heads  the  Dr.  balances,  these  should  be 
continued  in  regular  order  till  they  are  all  transferred;  after- 
wards the  Cr.  balances  should  be  taken  in  their  order. 

For  the  sake  of  illustration,  suppose  the  first  Debtor  title  of 
the  accounts,  per  Balance  Sheet,  to  be  Cash.  The  transfer  will, 
in  that  case,  be  made  according  to  the  following  directions: 
Write  the  title  of  this  account  in  large  round,  or  text  hand,  at 
the  top  of  the  page  appropriated  for  it,  in  the  new  Ledger.  On 
the  Dr.  side,  write,  in  the  first  column,  the  date  of  the  transfer; 
in  the  second,  the  words,  "  To  Balance  from  Ledger  A. ;"  in  the 
third,  the  folio  of  the  account  in  the  old  Ledger ;  and,  in  the 
money  columns,  the  amount.  Having  thus  opened  the  account 
in  the  new  Ledger,  turn  to  the  same  account  in  the  old  Ledger; 
and,  on  the  Cr.  side  of  "  Cash,"  enter  the  date  "  By  Balance  to 
Ledger  B,"  the  folio  of  the  account  in  the  new  Ledger;  and,  in 
the  money  columns,  place  the  amount  as  carried  forward.  The 
two  sides  on  addition  must  agree. 

This  manner  of  closing  the  old  Ledger,  and  opening  the  new 
one,  affords  a  ready  reference  from  one  book  to  another,  as 
may  be  seen  by  the  following  example  :  . 

OLD  LEDGER,  DESIGNATED  AS  LEDGER  A. 


Dr, 


Cash. 


8. 


Cr. 


Jany.  31.  iTo  Sundries. 


12,000  00 


Jany.  3 1 . 
Feb.  1 


By  Sundries. 
'<  Balance  to 
Ledger  B. 


5  000 
7,000 


00 
00 


D 


it^ 


gg  BECKER'S  BOOK-KEEPING. 

NEW  LEDGER,  DESIGNATED  AS  LEDGER  B. 


5. 

Dr.                                     Cash,                                     Cr. 

Feb.  l. 

To   Bal.   from 
Ledger  A. 

8 

7,000 

00 

In  the  manner  which  we  have  described,  the  accounts  should 
be  opened  in  the  new  Ledger,  and  the  same  closed  in  the  old 
Ledger.  The  accounts  which  have  Cr.  balances  are  closed  in 
the  old  Ledger,  "  To  Balance  to  Ledger  B."  on  the  Dr.  side  of  the 
account,  and  are  opened  in  the  new  Ledger,  "  By  Balance  from 
Ledger  A."  on  the  Cr.  side. 

Having  completed  the  transfer  of  the  accounts,  they  should 
be  compared  with  the  Balance  Sheet,  and  every  account,  after 
bein?  examined  and  found  to  be  correct,  should  be  checked  off 
thus  (  i/  )  both  in  the  Ledger  and  Balance  Sheet. 

When  is  Balance  acrount  usually  opened  1  Describe  the  process  gone 
throuffh  before  opening  it.  Is  this  an  approved  plan  1  What  is  proposed  in  ila 
place  ?  After  the  Trial  Balance  has  been  made  and  proved,  what  should  be 
ione  1  Describe  the  Transfer  Balance  Sheet.  How  is  it  closed  1  When  it  is 
closed,  what  is  the  next  stepi  Describe  the  division  and  internal  arrangement 
ot  the  new  Ledger.  How  should  the  accountant  arrange  his  books,  &c.,  when 
transferrino-  the  accounts  to  the  new  Ledger  ?  Take  any  account  you  please,  and 
show  how  it  will  be  transferred  if  it  has  a  Dii  balance ;  if  it  has  a  Cr.  balance. 
Show  how  the  old  Ledger  is  to  be  closed  in  both  these  cases.  What  method 
should  the  accountant  take  to  assure  himself  that  all  the  accounts  have  been 
transferred  1 


III  «> 


RULES  FOR  JOURNALIZING,  WITH  EXEMPLIFICATIONS 
OF  JOURNAL  AND  LEDGER  ENTRIES. 

Rule  L  When  one  thing  is  given  for  another,  the  thing  re- 
ceived  is  Dr.  to  the  thing  given  for  it. 

Rule  IL  When  a  thing  is  received,  and  nothing  given  for 
it  at  the  time,  the  thing  received  is  Dr.  to  the  party  from  whom 
it  was  obtained. 

Rule  IIL  When  a  thing  is  given  and  nothing  received  for 
it  at  the  time,  the  party  to  whom  it  is  given  is  Dr.  to  the  thinif 
given 


EXPLANATION  OF  ACCOUNTS.  39 

A  few  examples  will  show  the  application  of  these  rules. 

EXAMPLES. 

Transaction. — January  3d,  1847. 
Sold  to  Samuel  Moss  a  quantity  of  goods  for  Cash, 

amounting  per  Sales  Book  to  ^800,00 

In  this  transaction  "Merchandise^^  is  given  for  "Cash.'' 
According  to  Rule  I.  the  Cash  received  is  Dr.  to  the  Merchan- 
dise given  for  itj  therefore,  in  Journalizing  this  entry  we  say 

January  Sd,  1847.  !• 


U  Cash 


Dr.  To  Merchandise 

for  sales  to  Samuel  Moss,  per.  S.  B 


$800,00 


The  meaning  of  this  entry  is,  that  in  the  Ledger  "  Cash"  is 
to  be  debited  "To  Merchandise  |>800,00,"  and  "  Merchandise" 
is  to  be  credited  "  By  Cash  ^800,00."  The  following  are  the 
Ledger  entries : 


Dr. 

I. 

Cash,                                Cr. 

1847. 
Jany.  3. 

To  Merchandise. 

• 
1 

800 

00 

I 

Dr. 

2. 
Merchandise.                          Cr. 

1847. 
Jany.  3. 

By  Cash. 

« 
1 

800  00 

1 

Transaction. — January  9th,  1847. 
Bought  of  Wm.  Brown,  (on  credit.) 

200  Bbls.  Superfine  Flour,  a  $5,  {?>  1,000,00 

In    this  transaction,  "  Merchandise''  is  received  and  nothing 


I 


*  The  figures  m  these  columns  refer  to  the  page  of  the  Ledger,  and  those  in  th^ 
Ledger  refer  to  the  Journal. 


i.  HI 


40 


BECKER'S  BOOK-KEEPING. 


EXPLANATION  OF  ACCOUNTS. 


41 


given  for  it;  (at  the  time  of  receiving  it;)  therefore,  Rule  II.  ap 
plies.     The  *^  Merchandise^^  received  is  Dr.  to  the  party  from 
whom  it  was  obtained,  *  The  Journal  entry  will  be, 


ft 


January  9  th,  1847. 


•f.    Merchandise 


14 


Dr.  To 


Wm.  Brown. 


for  200  Bbls.  Superfine  Flour  at  $5 $1000,00 


The  meaning  of  this  entry  is,  that  in  the  Ledger  "  Merchan- 
dise" is  to  be  debited  "To  Wm.  Brown  |5 1,000,"  and  that «  Wm. 
Brown"  is  to  be  credited  "By  Merchandise  ^1,000."  The  fol- 
lowing are  the  Ledger  entries. 


2. 

Br. 

Merchandise.                        ^r. 

1847. 
Jany.  9. 

To  Wm.  Brown. 

2 

1 

1000 

00 

( 

14. 

Br. 

^m.  Brown. 

Cr. 

1847. 
Jany.  9. 

By  Merchandise. 

2 

1000 

00 

Transaction. — January  I5ih,  1847. 
Delivered  to  Wm.  Brown  my  note  at  3  months  from 
9th  inst.,  for  4*1,000,00 

In  this  transaction  a  promissory  note  is  given  and  nothing 
received  for  it  (at  the  time  of  giving  it;)  therefore,  ac- 
cording to  Rule  III.,  the  party  receiving  this  note  is  Dr.  to 
the  note  given.  All  notes,  drafts  or  acceptances  which  the  mer- 
chant issues  are  entered  under  the  head  of  Bills  Payable. 
Hence  the  Journal  entry  is 

3  January  I5th,  1847. 


\1  Wm.  Brown  Dr.  To 


8 


Bills  Payable. 


for  my  note  at  3  months  from  9th  inst $1000,00 


The  meaning  of  this  entry  is  that  "  Wm.  Brown"  is  to  be 
debited  "To  Bills  Payable  151,000,"  and  that  "Bills  Payable'* 


is  to  be  credited  "By  Wm.  Brown  ^1,000."    The  following  are 
the  Ledger  entries: 


14. 

Dr.                        Wm.  Brown.                       Cr. 

1847. 
Jany.  15. 

To  Bills  Payable. 

3 

1,000 

00 

8. 

Dr-                       Bills  Payable.                        Cr, 

1847. 
Jany.  15. 

By  Wm.  Brown. 

3 

1,000 

00 

The  preceding  examples  are  simple  Journal  entries,  having 
but  one  debtor  and  but  one  creditor.  The  application  of  the 
rules  to  them  is  therefore  very  easy.  But  there  are  other  and 
more  complicated  cases,  in  which  the  process  is  more  difficult. 
A  complex  entry  is  one  in  which  there  are  two  or  more  debtors 
to  one  creditor,  or  two  or  more  creditors  to  one  debtor.  When 
there  are  several  debtors  and  several  creditors,  the  entry  is  said 
to  be  complex  in  both  its  terms.  The  following  is  an  example 
of  a  complex  entry  in  one  term. 


iS3,000,00 


Transaction. — January  18M,  1847. 
Bought  of  James  Steel  &  Co., 

10,000  bushels  Turks  Island  Salt,  at  30  cts. 

Delivered  in  payment 
My  Draft  on  Joel  King,  New  York, 

at  30  days  date,  for  |>  1,200,00 

My  Note  at  30  days,  1,000,00 

Cash  for  balance,  less  1  per  cent.       ^800,00 

Discount  off,  8,00     792,00 

Discount  allowed  me  for  30  days,  8,00 

f3,000,00 


In  this  transaction  Salt  is  received;  my  note,  cash,  and  dis 
count  (i.  e.,time)  are  given.  For  my  Draft  on  Joel  King,  nothing 
was  civen  him.     Hence,  Rules  I.  and  II.  apply.     Rule  I.  ap- 
plies, because  to  the  amount  of  !?►  1,800  something  was  given 
Ii2  6 


tBri'WP' 


BECKER'S  BOOK-KEEPING. 


EXPLANATION  OF  ACCOUNTS. 


43 


r 


h 


hi 


1 


and  something  received.  Rule  II.  applies,  because,  for  value  ro 
ceived  to  the  amount  of  g  1,200  nothing  was  given.  Therefore 
the  Journal  entry  will  be  the  following: 

4         .  January  I8th,  1847. 


Uo 


Dr.  To  Sundries. 

for  purchase  of  James  Steel  &  Co. 

10,000  Bus.  Turks  Island  Salt,  at  30  cts.     . 

32  To  Joel  King, 

for  my  Draft,  James  Steel  &,  Co's.  &vour,  at 
30  days  date 

To  Bills  Payable, 

for  my  note  at  30  dajn,    ••••.•. 
To  Cash, 

for  balance,  less  discount. 

To  Discount  and  Interest, 

for  1  per  cent  allowed  me  on  $800. .     ,     . 


8 


*  «  Salt"  is  a  branch  of  Merchandise  account.  When  it  is  de- 
sirable to  ascertain  the  gain  or  loss  on  any  particular  article, 
Merchandise  account  may  be  divided  into  branches,  and  kept 
under  specific  titles,  such  as  Cotton,  Flour,  Wheat,  Brandy,  To- 
bacco,  &c. 

The  term  "Sundries,"  when  used  in  the  Journal  caption,  as 
above,  means  two  or  more  accounts.  It  is  used  for  the  sake  of 
brevity,  since  by  its  use  we  are  enabled,  in  the  general  or  head- 
ing entry  to  omit  the  names  of  the  several  accounts  which  it  re- 
presents. Thus,  in  the  preceding  entry,  instead  of  saying  "Salt 
Dr.  To  Joel  King,"  "Salt  Dr.  To  Bills  Payable,"  "Sail  Dr.  To 
Cash,"  and  "Salt  Dr.  To  Discount  and  Interest,"  we  say  "Salt 
Dr.  To  Sundries."  the  latter  term  being  the  abbreviated  title  for 
"  Sundry  Accounts."  Of  course,  no  such  account  as  "  Sundries" 
is  opened  in  the  Ledger.  "Salt"  must  be  debited  "To  Sundries 
«I3,000,"  and  "Joel  King,"  "Bills  Payable,"  "Cash,"  and 
"Discount  and  Interest"  credited  "By  Salt,"  each  for  its  re- 
spective amount,  the  aggregate  of  the  credit  items  being  equal 
to  the  whole  debit  amount.  The  following  are  the  Ledgei 
oQtries : 


10. 

Br,                                     Salt.                                      Cr, 

1847. 
Jany.  18. 

To  Sundries. 

4 

3,000 

00 

1 

-     32. 

Br.                            Joel  King.                            Cr, 

1847. 
Jany.  18. 

By  Salt 

4 

1 
1,200 

00 

8. 

Br.                       Bills  Payable.                       Cr, 

1847. 
Jany.  18. 

By  Salt 

4 

1,000 

00 

■ 

1. 

Br,                                      Cash.                                    Cr. 

1847. 
Jany.  18. 

By  Salt 

4 

792 

00 

6. 

Br.                 Discount  and  Interest.                 Cr, 

■«^ 

1847. 
Jany.  18. 

By  Salt 

4 

8 

00 

The  following  examples  will  show  the  method  of  treating 
complex  entries  in  both  terms: 


Transaction. — January  25thf  1847. 
Sold  to  Robert  Brandon, 

100  Bales  Cotton,  (belonging  to  J.  Knox's 
consignment,)  36,250  lbs.         a       7cts. 
1000  Bus.  Wheat,  (my  own,)  weight  975 
Bus  a  l»l,00 


$2,537,50 


975,00 
,512,50 


f  ■l< 


« 


\i 


BECKER^S  BOOKKEEPING. 


EXPLANATION  OF  ACCOUNTS. 


45 


Received  in  Payment 
My  Note,  Wm.  Brown's  favour^  due  9th — 

12th  April. 
His  Draft  on  Reynolds  &  Co.,  Baltimore^ 

my  favour,  at  60  days'  date. 
Wm.  Johnson's  Draft  on  me,  at  sight,  his 

favour,  being  in  full  for  balance  due  him 

on  account. 
Cash, 
The  Balance  sold  him  on  credit, 


$1,000,00 
950,00 


345,37 

500,00 

739,93 

$3,535,30 


Discount  off  on  my  note,  77  days,        $12,83 
do       on    Draft  on 
Reynolds  &  Co.,  63     "  9,97 


22,80 


$3,535,30 


In  the  above  transaction  several  things  are  received  and 
several  given.  Bills  Payable,  Bills  Receivable,  and  Cash  are 
received,  Cotton,  (belonging  to  sales  No.  1.)  Merchandise  (my 
own)  and  Discount  (i.  c,  time)  were  given.  For  Johnson's 
Draft,  and  the  Balance  sold  on  credit,  nothing  is  received. 
Therefore  Rules  I.  and  III.  apply.  Rule  I.  applies,  because  to 
he  amount  of  $2,450,  something  was  given  and  something 
received.  Rule  III.  applies,  because  to  the  amount  of  $1,085,30, 
something  was  given  for  which  nothing  was  received. 

The  Journal  entry,  therefore,  is  the  following: 
5  January  25th,  1847. 


8 


36 

1 

40 


Sundries  Dr.  To  Sundries 

for  sales  of  sundries  to  Robert  Brandon. 
Bills  Payable. 

for  my  note,  Wm.  Brown's  favour,  due  9th 
—12th  April 

Bills  Receivable, 

for  his  Draft  on  Reynolds  &  Co.,  Baltimore, 
my  &vour,  at  60  days'  date.  ..... 

William  Johnson, 

for  his  draft  on  me,  favour  of  Robert  Brandon, 
at  sight ••. 

Cash 

for  amount  received.     ••••••• 

Robert  Brandon, 

for  balance  due  me.      • 


1,000 


950 

345 

500 
739 


$3,535 


00 


00 

37 

00 

93 

30 


15 

To  Sales  No.  1, 

for  100  Bales  Cotton,  36,250  lbs.  at  7  c 

2,537 

60 

2 

To  Merchandise, 

for  1000  Bus.  Wheat,  weight  976  Bus.  at  $1, 

975 

00 

6 

To  Discount  and  Interest, 

for  disct  off  on  my  note,  77  days,               12,83 
u      «        on  Dft.  on  Reynolds  &  Co., 
63  days,                                                          9,97 

22 

30 

1 -■ __. _ . _ ; 

$3,536  30 

The  term  "  Sundries"  is  here  used  to  represent  both  titles 
and  items.  In  the  Caption  of  the  Journal  entry,  we  have  seen 
that  it  represents  titles,  as  when  we  say  "  Sundries  Dr.  to  Sun- 
dries." When  used  in  the  explanation  of  the  Journal  entry,  it 
represents  items.  Thus,  in  the  preceding  example,  we  have 
said,  "  for  sales  of  sundries  to  Robert  Brandon,"  meaning,  evi- 
dently "  for  sales  of  sundry  articles,  &c."  Entries  in  which 
this  word  is  used  in  these  two  different  acceptations,  are  of  fre- 
quent occurrence.  Hence  it  is  well  to  remember,  that  for  pur- 
poses of  illustration,  the  same  word  is  frequently  used  to  denote 
titles  and  items;  that  the  term  sundries  is  applied  both  to 
titles  and  items;  and  that  its  application  to  these  is  neither  in- 
discriminate nor  arbitrary,  but  is  governed  by  the  object  that  is 
to  be  attained  by  the  employment  of  the  term. 

We  have  already  said  that  there  is  no  such  account  as  "  Sun- 
dries" opened  in  the  Ledger.  Hence  the  Caption  or  Preface  of 
the  Journal  entries  in  a  transaction  like  the  preceding,  though 
it  refers  to  the  Ledger  entries,  does  not  point  out  what  the  latter 
is  to  be.  Thus  in  posting  the  last  example,  the  entry,  "  Sundries 
Dr.  to  Sundries"  does  not  indicate  the  Ledger  entry.  In 
Ledgerizing  we  proceed  to  take  up  singly  the  titles  included  under 
Dr.  "  Sundries"  and  debit  each  one  under  its  proper  account, 
"To  Sundries."  In  this  case  the  first  Ledger  entry  will  be 
"  Bills  Payable"  Dr.  «  To  Sundries  ^1000."  The  meaning  of 
this  entiy  is,  that  in  the  Journal,  where  Bills  Payable  is  a  debtor, 
more  than  one  account  is  creditor.  We  next  turn  to  the  accounts 
included  under  the  Cr.  "  Sundries,"  and  credit  each  one  "  By 
Sundries"  under  its  proper  account.  The  meaning  of  these 
entries  is,  that  in  the  Journal,  where  one  account  is  creditor 
more  than  one  is  debtor.  The  following  is  the  form  of  the 
Ledger  entries  in  the  last  example. 


46 


BECKER'S  BOOK-KEEPma. 


EXPLANATION  OF  ACCOUNTS. 


47 


I 


Br. 


Bills  Payable. 


Cr. 


1847. 
Jany.  25 


To  Sundries 


1000 


00 


7. 

Br. 

Bills  Receivable.                     Cr. 

1847. 
Jany.  25. 

To  Sundries 

m 

5 

950 

00 

36. 

Br, 


Wm,  Johnson. 


Cr. 


1847. 
Jany.  25. 


To  Sundries 


345 


37 


1. 
Br. 

Cash.                               Cr. 

1847. 
Jany.  25. 

To  Sundries 

6 

500 

00 

I 

40. 

Br. 


Robert  Brandon. 


Cr. 


1847. 
Jany.  25. 


To  Sundries 


739 


93 


15. 


Br.     Sales  No.  \^    {or  J.  Knox^s  Consignment.)     Cr. 


1847. 
Jany.  25. 


By  Sundries 


2537 


50 


Dr. 


Merchandise. 


Cr. 


1847. 
Jany,  25. 


By  Sundries 


975 


00 


6. 


Br. 


Discount  and  Interest. 


Cr. 


1847. 
Jany.  25. 


By  Sundries 


22 


80 


The  three  rules  for  Journalizing  which  we  have  given,  and 
which  we  have  appUed  in  the  foregoing  examples,  will  enable 
those  who  fally  understand  them,  to  dispose  of  any  transaction, 
however  ccmrlicated  it  may  be.  But  there  is  one  rule  which 
includes  these  three,  and  which,  consequently,  applies  to  all 
transaction?.  It  is  this:  the  account  that  receives  2^  debtor 
to  the  account  that  gives.  All  practical  entries  are  based  upon 
this  rule. 

From  these  rules  and  examples  it  will  be  perceived  that 
book-lceeping  by  Double  Entry  is  based  upon  a  principle  of 
mathematical  equilibrium,  which  equilibrium  is  attained  by  en- 
tering each  amount  both  on  the  Dr.  and  Cr.  side.  Hence  this 
principle  reqdres  that  every  debit  must  have  a  corresponding 
credit  and  vice  versa. 

What  i8  the  first  rule  for  Journalizing  1  The  second  1  The  third  1  Journalize 
the  transaction  of  January  3d.*  Give  the  Ledger  entries  for  the  same.  Apply 
the  proper  rule  to  the  transaction  of  January  9th.  Ledgerize  the  Journal  entry. 
Take  the  transaction  of  January  15th,  and  go  through  the  same  process.  What 
are  simple  Journal  entries  1  What  is  a  complex  entry?  When  is  an  entry  com" 
flex  in  both  terms  ?  Analyze  the  transaction  of  January  18th,  and  apply  the 
rules.  How  is  it  Journalized  1  How  are  the  Journal  entries  posted  ?  When  is 
merchandise  account  divided  into  branches  %  What  does  Sundries  mean  in  this 
case  t  Show  its  use  in  this  transaction.  Analyze  the  transaction  of  January 
25th,  and  apply  the  rules.  Give  the  Journal  entries  and  Ledgerize  them. 
Give  the  two  meanings  of  the  term  Sundries.  Show  how  it  is  used  in  this 
example.  Is  there  not  one  grand  rule  for  Journalizing  which  includes  the 
three  that  have  been  given  1  Show  that  a  principle  of  mathematical  equilibrium 
lies  at  the  foundation  of  Double  Entry  book-keeping. 


*  The  teacher  should  in  all  cases  of  this  kind  read  the  transaction  lo  the  student. 


4i 


BECKER'S  BOOK-KEEPIJNG. 


DEBTOR  AND  CREDITOR. 


49 


ffl 


DEBTOR  AND  CREDITOR. 

A  KNOWLEDGE  of  the  technical  meaning  of  the  terms  debtor 
and  creditor  is  indispensable  to  the  acquisition  of  a  correct 
knowledge  of  the  principles  of  book-keeping.  Rules  for  the 
dispositions  of  debits  and  credits  in  the  operation  of  Journaliz- 
ing, have  already  been  given,  and,  in  some  form,  are  contained 
in  every  work  upon  this  subject.  Yet,  with  these  aids  the  stu- 
dent is  sometimes  at  a  loss  to  comprehend  the  principles  involved 
in  the  explanation  and  directions  given  him.  He  can  readily 
understand  that  the  person  who  owes  is  debtor  and  the  one  to 
whom  money  is  due,  creditor;  but,  beyond  this  he  cannot  see 
any  reason  for  the  application  of  those  terms,  though  he  may 
know  and  be  able  to  apply  the  rules  for  Journalizing. 

This  difficulty  is  not  common  to  all  who  give  their  attention 
to  this  subject.  Some  can  readily  understand  why  "  the  account 
that  receives  is  debtor  to  the  account  that  gives."  But,  for  the 
benefit  of  those  who  can  see  no  adequate  reason  for  this  rule, 
we  think  it  advisable  to  give  the  views  and  illustrations  con- 
tained in  an  article  upon  Book-keeping,  in  the  Dublin  Review. 

The  author  of  that  article,  after  noticing  the  imperfect  manner 
in  which  this  subject  has  been  illustrated,  proceeds  to  give  his 
own  exposition.  He  commences  by  supposing  that  the  merchant 
commits  his  affairs  to  a  number  of  clerks,  assigning  to  each  clerk 
the  care  of  one  particular  branch  of  the  business,  instead  ot 
opening  an  account  to  represent  it.  Thus  he  supposes  the  busi- 
ness of  attending  to  the  receipt,  expenditure,  and  safe-keeping 
of  the  merchant's  cash  be  confided  to  one  clerk,  whom  we  shall 
call  Cash  ;  that  of  superintending  the  merchandise  transactioBS 
to  another  clerk,  named  Merchandise,  &c.  These  clerks,  of 
course,  are  representatives  of  the  merchant  or  other  person  who 
employs  them.  They  are,  therefore,  accountable  to  him  for 
every  item  of  his  property  which  they  receive,  and  are  relieved 
of  this  accountability  when  they  part  with  the  property  intrusted 

them. 

Bearing  this  in  mind,  let  us  suppose  that  goods  to  the  amount 
of  15300  are  purchased,  one  half  of  which  is  paid  in  cash  and 
for  the  remaining  half  the  merchant  gives  his  note.  The  goods 
when  received  are  of  course  delivered  to  "  Merchandise."     He 


is  accountable  for  them.  He  therefore  becomes  a  debtor.  But, 
to  whom  is  he  debtor?  Undoubtedly  to  "Cash"  and  "Bills 
Payable,"  because  both  of  these  clerks  have  made  payments  on 
his  account,  and  for  making  these  payments  they  have  received 
no  consideration.  There  can  be  no  difficulty  in  comprehending 
this,  for  the  student  knows  that  if  he  pays  money  for  a  friend 
from  his  own  funds,  his  friend  becomes  a  debtor  to  him  for  the 
amount  paid,  and  he  of  course  is  his  friend's  creditor.  Let  us 
look  at  the  other  side  of  the  transaction.  "'  Cash"  is  called  upon 
to  pay  on  behalf  of  " Merchandise"  |>150.  He  owes  "Merchan- 
dise" nothing,  neither  has  the  latter  furnished  him  with  funds 
with  which  to  make  the  payment.  "Cash,"  who  is  accountable 
for  all  the  money  he  has  on  hand,  is  relieved  of  this  account- 
ability to  the  amount  of  $\S0.  He  is  a  creditor,  and  a  creditor 
of  "  Merchandise."  The  same  reasoning  holds  good  with  re- 
gard to  *' Bills  Payable."  He  is  a  creditor  of  "Merchandise." 
Hence,  the  Journal  entry  of  this  transaction  will  be 

Merchandise         Dr.  To         Sundries         J>300,00 

To  Cash  150,00 

To  Bills  Payable  1 50,00 

Let  us  take  another  transaction.  Suppose  the  merchant  sells 
goods  to  the  amount  of  ^497,  and  receives  in  payment,  cash 
$200  and  a  note  for  ^300  drawn  by  A.  in  favour  of  B.,  due  in 
60  days  after  its  receipt.  It  will  be  observed,  here,  that  this  note 
is  not  worth  $300  till  it  becomes  due.  To  obtain  its  present 
value  we  must  subtract  the  discount  for  60  days,  which  is  $^, 
The  note  is  therefore  worth  only  $291,  But  the  buyer  allows 
the  merchant  the  discount,  or,  in  other  words,  pays  him  |>3  over 
and  above  what  is  due  him.     This  should  be  borne  in  mind. 

"Merchandise"  delivers  up  goods  to  the  amount  of  $497. 
He  is  no  longer  responsible  to  his  employer  for  that  amount  of 
goods.  How  is  he  to  show  that  he^  has  rid  himself  of  this  re- 
sponsibility? By  crediting  himself  for  that  amount.  Who  are 
his  debtors?  " Cash"  certainly  is  a  debtor,  because  he  is  re- 
sponsible for  the  amount  ($200)  which  he  has  received.  He  has 
increased  his  indebtedness  to  his  employer  $200.  With  equai 
certainty  "  Cash"  is  debtor  to  "  Merchandise,"  because  he  re- 
ceived the  $200  from  or  for  "Merchandise,"  and  gave  the  latter 
nothing  for  that  amount.  He  owes  "  Merchandise"  $200.  "  Bills 
£  7 


50 


BECKER'S  BOOK-KEEPING. 


INDEX  TO  THE  LEDGER. 


51 


Receivable"  also  owes  the  latter  $300  for  the  same  reason.   But 
it  is  not  to  **  Merchandise"  alone  that  these  gentlemen  are  in- 
debted.     Here  is  a  fourth  clerk  who  is  to  share  in  the  transac 
tion.    This  clerk  is  called  "  Profit  and  Loss."    His  duty  is  to  bear 
the  blame  whenever  any  loss  is  sustained,  and  to  receive  credit 
for  all  sums  that  are  gained  in  any  department  of  the  establish- 
ment.    Or,  in  other  words,  he  is  debited  for  all  losses,  and 
credited  for  all  gains.    If  his  employer's  pocket  be  picked,  he  is 
accountable  for  it ;  if  a  purse  be  found,  he  receives  the  credit  for 
it.     But  when  it  is  desired  to  ascertain  the  gains  or  losses  in 
their  various  forms,  this  clerk  finds  it  necessary  to  perform  some 
of  his  duties  by  deputies.     The  deputy  who  will  take  charge  ^f 
his  duties  in  this  transaction  is  "Discount  and  Interest."     Of 
course,  his  duties  are  the  same  as  those  of  his  principal.    Hence 
he  is  entitled  to  the  credit  for  the  $3  that  have  been  gained  in 
this  transaction.  "Cash"  and  "Bills  Receivable   are  the  debtors, 
because  they  receive  the  amount  which  is  to  be  placed  to  the 
credit  of  "  Discount  and  Interest."     Hence  the  Journal  entry  of 
this  transaction  will  be  the  following  : 

Sundries  Dr.  To  Sundries. 

Cash  200,00 

Bills  Receivable,  300,00 

«500,00 

To  Merchandise,  497,00 

To  Discount  and  Interest,  3,00 

Thus  it  will  be  perceived  that  when  the  various  accounts  are 
« considered  as  different  departments  in  charge  of  clerks,  repre- 
senting the  merchant,  the  propriety  of  the  rules  for  Journalizing 
can  readily  be  perceived.  The  case  is  not  different  when  we 
consider  them  as  they  really  exist.  The  account  of  Merchandise, 
for  example,  is  responsible  for  all  it  receives;  hence,  it  should 
be  debited  for  what  it  receives.  It  is  relieved  of  its  responsibility 
•to  the  amount  that  it  gives;  hence,  it  should  be  credited  for 

*irhat  it  gives. 

We  shall  recur  to  the  principles  contained  in  the  article  which 
we  have  made  use  of,  when  we  treat  of  the  theory  of  Balance; 
and,  though  they  will  be  used  for  a  purpose  different  from  that 
to  which  we  have  applied  them,  they  will  afford  additional  but 
incidental  illustrations  of  the  terms  debtor  and  creditor. 


What  is  the  difficulty  usually  encountered  by  students  in  re^id  to  the  use 
^f  the  terms  Dr.  and  Cr.1  For  the  sake  of  illustration,  how  may  we  suppose  a 
business  to  be  conducted  without  opening  the  various  accounts'?  Illustrate 
tills  method.  In  what  capacity  do  these  imaginary  clerks  act  1  What  follows 
from  thisi  Take  the  first  example  given  and  show  how  the  Dr.  and  Or.  re- 
lations of  Cash,  Bills  Receivable,  and  Mdse.  arise.  Derive  from  the  explanatien 
the  real  entries  for  this  transaction.  Take  the  next  example  and  explain  its  de- 
tails. Show  how  the  relations  of  the  various  clerks  arise  in  this  case.  De- 
rive from  these  the  real  Journal  entry.  What  are  the  duties  of  the  "  Profit 
and  Loss*'  clerk.  When  then  is  he  debited,  and  when  credited  ?  Is  the  pro- 
priety of  the  rules  for  Journalizing  as  evident  when  we  consider  the  accounts 
as  they  really  exist  as  when  we  represent  them  by  clerks  ?  Illustrate  this  by 
the  Mdse.  acc't. 


4  ♦  •  *  »■ 


INDEX  TO  THE  LEDGER. 

The  Index  is  a  list  of  the  names  of  the  accounts  in  the 
Ledger,  alphabetically  arranged.  It  is  sometimes  bound  with  the 
Ledger,  occupying  the  fore  part  of  the  volume,  but  it  is  as  often 
bound  in  a  book  by  itself  The  latter  plan  is  more  convenient, 
and  perhaps  better  in  all  respects  than  the  former,  since  by  its 
adoption,  the  Ledger  will  be  subject  to  less  handling  on  referring 
to  accounts  or  opening  new  ones;  and  the  Book-keeper  will  be 
enabled  to  keep  it  cleaner  than  if  the  Index  were  bound  with  it. 

The  following  are  the  directions  for  forming  the  Index: — 
Having  written  the  title  of  an  account  for  the  first  time  in  the 
Ledger,  which  is  technically  called  "opening  an  account,"  turn 
immediately  to  the  proper  page  of  the  Index,  and  there  record 
the  title  with  the  folio  or  page  on  which  the  account  is  opened. 
All  representative  accounts,  and  in  general  the  names  of  firms 
or  companies  are  to  be  written  in  the  Index  in  the  same  manner 
as  at  the  head  of  the  accounts.  The  names  of  individual  ac- 
counts, however,  should  bo  inserted  differently.  For  instance,  the 
account  of  John  Hamilton  should  be  placed  on  the  page  ap- 
propriated for  the  letter  H,  and  written,  ^Hamilton,  John.  The 
account  of  Jas.  L.  Roberts  &  Co.  should  be  placed  under  the  head 
of  R,  and  written,  Roberts,  Jas.  L.,  &  Co.  This  arrangement,  it 
will  be  perceived,  facilitates  reference  to  accounts  of  this  nature. 

What  is  the  Index  to  the  Ledger!  When  are  the  names  of  the  accounts  to 
be  entered  in  the  Index?  How  are  reprssentaiive  accounts  entered?  Individual 
accoants  1     Give  illustrations. 


llSi 


BECKER'S  BOOK-KEEPING. 


s 


f] 


THE   BILL   BOOK. 

This  is  a  book  of  original  entry.  It  is  divided  into  two  parts, 
oae  of  which  is  appropriated  for  Bills  Receivable,  and  the  other 
for  Bills  Payable.  The  arrangement  of  the  various  items  ci 
entry  in  this  book  is  very  simple ;  all  explanations  being  re- 
corded briefly,  and  in  columns  with  appropriate  headings. 

All  Notes,  Drafts,  Bills  of  Exchange,  and  other  written  obli- 
gations payable  to  the  merchant,  are  entered  as  soon  as  received 
in  that  portion  of  the  book  appropriated  to  Bills  Receivable. 

The  merchant's  Notes  passed  to  others,  and  Drafts  on  him, 
not  drawn  at  sight  and  accepted  by  him,  are,  when  passed  or 
accepted,  immediately  entered  under  the  head  of  Bills  Payable. 

The  total  amount  on  the  Dr.  side  of  Bills  Receivable  account 
in  the  Ledger  must  always  agree  with  the  total  amount  of 
Bills  Receivable  entered  in  the  Bill  Book.  All  Bills  Receivable, 
when  passed  away  or  paid,  are  entered  in  the  column  headed 
**  Remarks,"  with  the  date,  as  paid  June  7th,  "  Passed  to  H. 
Neff,"  "  Discounted  at  Philadelphia  Bank,"  &c.  The  object  of 
these  entries  is  twofold.  First,  it  is  to  show  at  a  glance  the  total 
amount  of  Notes,  &c.,  paid  or  transferred,  which  amount  must  be 
equal  to  the  total  of  the  sums  on  the  Cr.  side  of  Bills  Receivable 
account  in  the  Ledger.  Secondly,  it  shows  the  amount  of  Bills 
Receivable  remaining  on  hand  and  unpaid;  which  amount  must 
agree  with  the  Balance  of  Bills  Receivable  account  in  the  Ledger. 

Similar  principles  apply  to  the  case  of  Bills  Payable;  but 
their  application  is  not  exactly  the  same  as  is  that  of  Bills  Re- 
ceivable. In  the  former  case  the  amount  of  Notes,  &c.,  in  the 
Bill  Book  must  correspond  with  the  total  on  the  Cr.  side  of  Bills 
Payable  account  in  the  Ledger;  the  total  of  the  payments  must 
agree  with  the  total  of  the  Dr.  side  of  the  Ledger  account;  and 
the  difference  between  the  two  sides  of  the  latter  must  be  the 
amount  of  notes,  &c.,  unpaid,  as  indicated  by  the  Bill  Book. 

How  is  the  Bill  Book  divided  1  What  are  entered  under  Bills  Receivable? 
Under  Bills  Payable  1  How  does  the  Book  for  Bills  Receivable  enable  us  to 
test  the  correctness  of  the  same  in  the  Ledger!  When  a  Bills  Receivable  has 
been  passed  away  or  paid,  what  entry  must  be  made  in  the  Bill  Bookl  What 
is  the  first  object  of  these  entries,  and  how  do  they  afford  a  test  of  the  correct- 
ness of  the  Ledger  account  What  is  the  second  object,  and  what  further  test 
do  the  entries  afford  1  Show  how  similar  principles  apply  to  Bills  Payable. 


INVOICE  OUTWARD  BOOK. 


53 


THE   COMMISSIOxV  SALES  BOOK. 

This  book  is  ruled  with  columns  for  the  different  details  of 
each  distinct  consignment.  These  details  are  recorded  upon 
opposite  pages,  with  a  preamble  over  both,  setting  forth  the  de- 
scription of  the  goods,  the  name  of  the  party  from  whom  re- 
ceived, &c.  The  left  hand  page  contains  a  copy  of  the  invoice 
received.  On  the  right  hand  page  are  inserted  the  particulars 
of  sales,  viz.:  When  sold,  the  purchasers,  the  gross  quantity, 
(as  hhds.,  bbls.,  bales,  &c.,)  the  net  quantity,  yds.,  weight,  &c., 
when  due,  price,  and  amount.  The  difference  between  the  total 
amounts  of  the  sales,  and  the  charges  on  the  consignment  is  the 
net  proceeds  due  the  consignor,  which,  on  making  the  closing 
entries,  is  placed  to  the  credit  of  his  account. 

How  is  the  Commission  Sales  Book  ruled  !  Describe  the  internal  arrange- 
ments of  the  book.  What  is  entered  on  the  left  hand  page  ?  What  are  entered 
on  the  right  hand  page  ?  How  is  the  amount  of  the  net  proceeds  due  the  cott- 
•ignor  ascertained  I 


« 


( .. 


^  *  »*  »■ 


THE  INVOICE  OUTWARD  BOOK. 

In  this  book  are  copied  all  invoices  of  goods  shipped  abroad 
on  consignment,  or  delivered  into  the  hands  of  an  agent  bv  the 
merchant  or  by  others,  according  to  his  instructions  on  his  own 
or  on  joint  interest  and  account  with  others;  also,  all  invoices 
of  goods  shipped  by  the  merchant  on  account  of  others.  All  of 
these  invoices  are  copied  on  the  left  hand  page,  or  Dr.  side  of 
the  book.  On  the  right  hand  page,  or  Cr.  side  of  the  account,  are 
to  be  copied  the  sales  of  the  goods  when  the  account  sales  is 
received.  If  the  shipment,  &c.,  be  on  account  of  others,  a  memo- 
randum is  made,  showing  the  person  who  was  charged  for  the 
amount  of  the  Invoice. 

What  is  the  use  of  the  Invoice  Outward  Book  1  What  is  the  use  of  the  left 
hand  page  of  this  book  I  What  that  of  the  right  hand  ?  What  memorandum 
must  be  made  when  the  shipment  is  on  account  of  others  ? 


E  2 


54 


BECKER'S  BOOK-KEEPIIVG. 


BOOKS  OF  ORIGINAL  ENTRf. 


55 


THE  CHECK  BOOK. 

This  is  a  printed  book  of  blank  forms,  with  a  broad  margin  to 
each  page.  In  this  margin,  in  column  No.  1,  are  noted  all 
moneys  deposited  in  bank.  When  payment  is  to  be  made  by 
check  upon  a  bank,  or  when  it  is  desired  that  funds  should  be 
drawn  from  the  bank,  one  of  these  blank  checks  is  filled  and 
torn  off,  and  a  memorandum  of  the  payment  is  made  in  the 
margin,  in  column  No.  2.  This  memorandum  must  be  con- 
sidered as  the  original  entry.  Hence  it  is  necessary  that  entries 
in  this  book  should  be  made  with  system  and  in  business  order. 
There  should  be  inserted  the  number  of  the  check,  date,  account 
for  which  payment  was  made,  or  money  drawn,  the  amount, 
and  such  other  information  as  may  assist  the  cashier  in  trans- 
posing the  payment  in  the  Cash  Book. 

This  book  should  be  balanced  daily.  If  it  be  not,  the  cashier 
cannot  prove  the  correctness  of  his  balance  in  the  Cash  Book. 
By  subtracting  from  the  sum  of  deposits  the  total  amount  with- 
drawn or  checked  out,  we  shall  have  the  amount  remaining  in 
bank.  This  amount  must  agree  with  the  balance  in  the  Cash 
Book.  If  the  cashier  have  any  money  out  of  bank,  which  has 
been  entered  in  the  Cash  Book,  he  should  add  the  amount  of 
the  same  to  the  balance  in  bank,  and  the  sum  will  equal  the 
difference  between  the  two  sides  of  Cash  account,  if  the  latter 
has  been  correctly  kept. 

Notes  and  drafts  deposited  for  collection  are  entered  in  this 
book,  in  column  No.  1,  when  they  have  been  collected.  The 
proceeds  of  notes  and  drafts  discounted  are  also  added  to  the 
amount  in  bank.  When  the  Bank  Book  has  been  written  up 
and  balanced,  (and,  in  most  banks  it  is  settled  as  often  as  once 
a  month,)  the  balance  indicated  by  it  must  be  the  same  as  that 
in  the  Check  Book. 

Where  are  moneys  deposited  in  bank  to  be  entered  1  When  money  is  to  be 
drawn  from  bank  or  payment  to  be  made  by  check,  describe  the  process  gone 
throuffh.  What  particulars  should  compose  the  memorandum  made  in  column 
Nfo.21  Why  should  this  book  be  balanced  daily  ?  How  is  it  balanced  ?  How 
does  the  balance  from  the  Check  Book  aid  in  balancing  the  Cash  Bookl  How 
are  Notes  and  Drafts  deposited  for  collection  to  be  entered  in  this  book  1  How 
are  discounted  notes  to  be  entered  1  Show  how  the  Bank  Book  and  Check 
Book  prove  each  other. 


BOOKS  OF  ORIGINAL  ENTRY. 

As  these  books  are  often  the  only  means  of  proving  indebt- 
edness to  their  owners,  and,  consequently,  of  recovering  nic  ney 
due  them,  it  is  important  that  some  directions  should  be  given 
in  regard  to  the  manner  of  keeping  them.  Books  of  original 
entry  are  admitted  in  courts  of  justice,  as  evidence  of  the  sale 
and  delivery  of  goods,  and  of  work  done.  But  the  Book-keeper 
may  be  governed  by  certain  practices  which  will  render  such 
books  inadmissible  as  evidence,  because  the  nature  of  the  books 
may  thereby  become  changed;  they  may  no  longer  be  books 
of  original  entry.  It  is  therefore  necessary  that  certain  rules  be 
observed  in  making  original  entries  of  sales  and  delivery  or  of 
work  done.  The  rules  given  by  Dando  upon  this  subject  are, 
first,  the  book  in  which  sales,  8fc.,  are  entered  must  be  strictly  a 
book  of  original  entry  ;  secondly,  the  entries  must  be  m,ade  at 
the  time  they  bear  date;  thirdly,  they  m,ust  be  inade  at  or  near 
the  time  of  the  delivery  of  the  goods,  or  the  doing  of  the  work. 

First,  the  books  must  be  "  books  of  original  entry."  It  will 
not  do  to  enter  sales,  &c.,  on  a  slate,  a  piece  of  paper,  &c.,  and 
copy  them  into  the  Day  Book  at  convenience,  because  there 
would  be  abundant  room  for  fraud,  in  the  copying  of  such 
entries.  Hence,  in  wholesale  or  jobbing  houses,  it  is  not  allow- 
able for  the  Book-keeper  to  make  out  a  bill  for  goods  sold,  and 
copy  the  same  into  the  Sales  Book.  The  bill  rendered,  and  not 
the  Sales  Book,  contains  the  original  entry  in  that  case.  This 
method  is  objectionable,  not  only  on  the  ground  that  the  value 
of  goods  entered  in  this  manner  cannot  be  recovered;  but  be- 
cause it  may  occasion  disputes  between  the  merchant  and  his 
customers.  Errors  may  be  made  in  copying  the  bill  into  the 
Sales  Book,  and  as  the  bill  has  gone  out  of  the  hands  of  the 
seller,  the  errors  cannot  be  corrected,  or  the  purchaser  may 
object  to  any  alteration  in  what  should  have  been  the  **  book 
of  original  entry."  If,  on  the  contrary,  the  entry  had  been 
made  in  the  Sales  Book,  and  the  bill  copied  from  it,  no  dispute 
could  arise  in  case  of  error  in  the  bill,  because  the  Sales  Book,  and 
not  the  bill,  would  then  be  the  test  and  standard  of  correctness. 

Secondly,  the  entries  must  be  made  at  the  time  of  their  date. 
They  must  not  be  ante-dated  if  the  Book-keeper  would  avoid 
suspicion. 


do 


BECKEKS  BOOK-KEEPING. 


Thirdly,  the  entries  must  he  made  at  or  near  the  time  of  the 
delivery  of  the  goods,  or  the  doing  of  the  work.  They  must 
not  he  made  when  the  goods  are  ordered,  nor  long  after  iheir 
delivery.  They  must  he  made  at  or  before  the  time  of  the 
delivery.  The  entry  for  work  done,  however,  may  be  made 
after  the  work  has  been  done,  and  the  goods  have  been 
delivered,  because  the  work  is  entered  as  a  single  job,  without 
any  such  detailed  description  of  quantities,  qualities,  &.C.,  as 
must  be  made  when  goods  are  sold. 

If  these  rules  be  observed  no  difficulty  will  exist  in  recovering 
debts  upon  book  account.  The  rules  have  been  given,  because 
they  are  liable  to  be  overlooked  in  practice,  but  they  are  not 
absolutely  necessary  to  one  who  is  accustomed  to  use  terms  in 
their  true  acceptation,  for  they  are  all  contained  in,  and  sug- 
gested by  the  phrase  "books  of  original  entry.'' 

Why  is  it  important  that  care  should  be  exercised  in  keeping  books  of  ori^- 
nal  entry  !  In  what  cases  are  these  books  admitted  as  evidence  1  What  are  the 
three  rules  for  making  entries  for  goods  sold  and  delivered,  or  for  work  done  1 
Mention  some  ways  in  which  entries  of  this  kind  cannot  be  made,  and  tell 
why  they  cannot.  Why  is  it  improper  to  make  out  a  bill  for  goods,  and  copy 
the  same  into  the  Sales  Book  1  Is  it  allowable  to  ante-date  entries  1  When  is 
it  improper  to  make  entries  for  goods  sold  \  When  may  the  entry  for  work 
done  be  made  1    Why  ? 


■4   »»  >  » 


OPENING  A  SET  OF  BOOKS. 

The  first  step  to  be  taken  on  opening  a  set  of  books,  is,  to 
make  out  on  paper  an  Inventory  of  the  property  which  the 
owner  of  the  books  possesses,  or  of  such  portions  of  it  as  he 
intends  putting  into  trade.  In  this  Inventory,  property  will  be 
arranged  under  some,  or,  perhaps,  all  of  the  following  heads: 

Cash,  Houses  and  Lands,  Bonds  and  Mortgages  from  other 

, persons.  Notes  and  Drafts  payable  to  the  merchant  or  his  order, 

Merchandise  or  other  goods,  Stocks  in  corporate  companies,  and 

property  of  any  description  that  may  be  in  the  hands  of  an  agent. 

These  constitute  the  merchant's  jSssets,  Resources,  or  Effects. 

The  next  step  is  to  make  a  full  statement  or  Inventory  of  his 

debts,  if  there  be  any.   In  this  Inventory  are  named  the  persons 

to  whom  debts  are  owing,  with  the  amount  due  each.     The 

Book-keeper  should  then  record  the  amount  of  the  merchant's 

nftes  passed  to  others,  and  not  yet  redeemed,  the  amount  of 


PERIODICAL  CLOSING  OF  ACCOUNTS. 


57 


Bonds  and  Mortgages  on  his  property,  and  the  amount  of  his 
acceptances  for  others.     These  are  termed  his  Liabilities. 

These  two  statements  should  be  carefully  examined,  and,  if 
found  to  be  correct,  they  should  be  copied  neatly  into  the  "  Stock 
and  Proof  Book,"  or  on  a  piece  of  paper,  and  filed  away.  From 
this  book  or  sheet  are  made,  in  Dr.  and  Cr.  form,  the  first  entries 
in  the  several  Day  Books,  viz.:  in  the  Cash  Book,  Bill  Book, 
Invoice  Book,  and  Blotter;  from  these  books  the  amounts  may 
be  posted  directly  to  the  proper  accounts,  which  are  by  this  plan 
introduced  lor  the  first  time  in  the  Ledger.  For  examples  under 
this  method,  see  Series  III. 

But,  if  the  Journal  be  made  the  common  vehicle  for  carrying 
the  amounts  to  the  proper  accounts  in  the  Ledger,  the  entries 
in  each  book  are  to  be  Journalized  separately,  or  in  connection 
with  transactions  recorded  in  the  particular  book  whose  entries 
are  being  carried  to  the  Journal.  For  examples  under  this 
method,  see  Series  II. 

What  is  the  first  step  to  be  taken  on  opening  a  set  of  books'?  Under  what 
heads  is  property  arranged  in  the  Inventory  of  the  same  %  What  does  a  mer- 
chant's property  constitute  %  What  is  the  next  step  %  What  should  be  included 
in  the  Inventory  of  debts  1  What  do  the  merchant's  debts  constitute?  In  what 
book  should  these  two  Inventories  be  copied  %  What  is  the  use  of  keeping  a 
record  of  them  %  When  the  proper  opening  entries  have  been  made  in  the 
various  Day  Books,  what  is  to  be  done  % 


|i 


PERIODICAL  CLOSING  OF  ACCOUNTS. 

It  is  customary  among  merchants  and  accountants  to  set 
apart  periodical  times  for  the  closing  of  accounts,  or  "  closing 
the  books,"  as  it  is  termed.  This  process  is  gone  through  once 
a  year  or  oftener,  according  to  the  necessities  of  the  case,  or 
the  choice  of  the  merchant.  Its  object  is  to  acquaint  the  owner 
of  the  books  with  the  exact  condition  of  his  business  affairs,  by 
presenting  to  him  a  concise  statement  of  his  gains  or  losses, 
during  the  period  through  which  his  accounts  extend,  and  ol 
his  resources  and  liabilities  at  the  time  of  closing  the  books. 

If  the  accounts,  after  being  closed,  are  to  be  reopened  in  the 
same  Ledger,  the  process  to  be  gone  through  is  similar  to  that 
which  has  been  described  in  treating  of  the  mode  of  transferring 
Hccounts  to  a  new  Ledger.     Having  ascertained  by  the  "  Trial 

8 


58 


BECKER'S  BOOK-KEEPING. 


PERIODICAL  CLOSING  OF  ACCOUNTS. 


59 


Balance"  that  the  accounts  are  correct,  the  student  should  proceed 
to  close  each  account  separately.  For  the  sake  of  illustration 
we  will  take  those  accounts  which  are  closed  with  balance.  If 
the  Dr.  side  exceed  the  Cr.,  the  account  must  be  closed  "  By 
Balance"  for  the  amount  of  the  excess.  The  amounts  being 
then  added  together  on  both  sides,  the  two  sums  will  be  equal. 
Having  thus  closed  the  account,  the  work  is  finished  by  writing 
on  the  Dr.  side  "  To  Balance,"  and  placing  the  amount  in  the 
money  columns.  If  the  Cr.  side  exceed  the  Dr.,  the  account 
must  be  closed  « To  Balance,"  and  the  amount  transferred  to 
the  Cr.  side,  the  words  «  By  Balance"  being  written  before  it. 
An  example  of  each  case  is  appended  for  illustration. 


Dr. 

Robert  Morris.                       Cr, 

1847. 
Jany.  12. 

Fth.  1. 

To  Mdse.                { 

S     850 
850 

00 
00 

1847. 
Jany.  19. 
«       31. 

By  Sundries 
««   Balance 

9 

550 
300 

850 

00 
00 

00 

To  Balance 

300 1 00 

Dr.                     Samuel  Walker.                      Cr. 

1847- 
Jany.  4. 

«     18. 
«    31. 

To  Bills  Receivable  3 
"   Cash        ^          9 
"    Balance 

800 
250 
500 

1550 

00 
00 
00 

00 

1847. 
Jany.  2. 
'*    16. 

By  Mdse. 

2 

8 

800 
750 

1550 
500 

00 
00 

00 
00 

1 

Feb.  1. 

By  Balance 

Those  accounts  which  have  but  one  entry  on  either  side  need 
not  be  closed,  but  should  remain  as  they  are.  When, however,  a 
transfer  of  accounts  to  a  new  Ledger  is  to  be  made,  they  should  be 
treated  like  all  other  cases  in  which  there  is  an  excess  on  one  side. 

When  an  account  balances  of  itself,  it  should  be  closed  with- 
out waiting  for  the  "periodical  closing  of  accounts."  This  can 
be  done  by  drawing  red  lines  beneath  the  amounts. 

Before  leaving  this  subject,  we  think  it  important  that  the 
learner  should  be  furnished  with  some  exposition  of  the  princi- 
ples involved  in  the  directions  given  him  for  balancing  accounts. 
We  have  before  intimated  that  we  think  it  important  that  in  a 
science  like  this,  the  principles  upon  which  rules  are  founded 
•hould  be  known,  because  such  knowledge  insures  facility  and 


promptness  in  the  application  of  those  rules  to  any  case  which 
may  he  presented. 

In  the  present  case  the  reasons  for  the  rules  of  balancing  are 
very  simple,  though  their  simplicity  has  not  contributed  to  make 
them  more  generally  known  either  by  the  students  or  teachers. 
We  are  indebted  for  our  explanation  to  the  article  in  the  Dublin 
Review,  to  which  we  have  already  referred. 

To  express  accurately  the  views  of  the  author  of  that  article, 
as  well  as  to  make  the  explanation  more  intelligible  to  the  stu- 
dent, we  will  continue  his  illustration  of  the  clerks.  He  sup- 
poses that  at  the  end  of  the  year,  or  when  the  books  are  to  be 
closed,  a  new  clerk  called  Balance  is  appointed,  whose  duty  it 
is  to  go  round  among  the  other  clerks  for  the  purpose  of  settling 
with  them  their  accounts  with  the  merchant,  and  of  collecting 
from  them  the  amounts  in  which  they  stand  indebted  to  him.  A 
few  examples  will  illustrate  these  remarks. 

Let  us  suppose  that  the  clerk  who  has  charge  of  Cash  account 
has  received  during  the  year  S2,000,  and  paid  out  during  the 
same  time  v^l,700.  When  "Balance"  comes  round  and  desires 
him  to  present  his  account,  it  is  ascertained  that  he  (Cash)  is  ac- 
countable for  |>300.  In  order  therefore  to  close  his  account,  he 
must  deliver  to  "Balance,"  who  is  the  agent  of  his  employer, 
the  $300  remaining  in  his  hands.  When  "Balance"  receives  the 
amount,  "Cash"  debits  "Balance,"  and  credits  himself  for  the 
amount.  Hence,  the  closing  entry  of  "  Cash"  will  be  "  By 
Balance  |>300." 

Again,  suppose  the  clerk  in  charge  of  Merchandise  account 
be  required  to  settle  with  Balance.  He  finds  upon  examination 
that  the  amount  of  the  Dr.  side  of  his  account  or  the  amount  of 
goods  purchased  is  $1,000,  and  that  the  amount  of  the  Cr.  side, 
or  of  the  goods  sold  is  .$400.  Upon  taking  an  account  of  stock, 
valuing  the  goods  on  hand  at  cost  prices,  he  finds  that  the  value 
of  the  goods  unsold,  for  which  he  is  accountable,  is  $800.  He 
clears  himself  of  this  accountability  by  delivering  that  amount 
to  "  Balance,"  debiting  Balance  and  crediting  himself  for  the 
same.  Hence,  on  the  Cr.  side  of  the  account  he  writes  "By 
Balance  $800."  But  we  are  not  yet  done  with  this  account. 
It  will  be  observed  that  the  Merchandise  clerk  received  goods 
to  the  amount  of  $1,000,  and  sold  a  certain  portion  of  them 
which  cost  $200,  thus  keeping  a  balance  of  $800  worth  ou 
hand.     But   he   sold  for   $400   the   goods  which   cost   $200 


»a'j-"#":s: 


60 


B£CK£R'S  BOOK-KEEPING. 


Therefore  he  sold  them  at  $200  profit.  Hence  "  Profit  and  Loss*  > 

must  get  credit  for  $200,  and  Merchandise  is  Dr.  for  that  amount 

We  have  before  explained  the  office  of  "Profit  and  Loss;''  wo 

will  merely  state,  therefore,  that  in   the  case    before  us,  the 

closing  entry  on  the  Dr  side  will  be  "To  Profit  and  Loss  $200." 

Balance  must  be  debited  for  the  amount  of  goods  on  hand  (|>S00,) 

and  hence,  in  no  other  way  can  the  account  be  made  to  exhibit 

a  true  statement  of  affairs,  than  by  crediting  "Profit  and  Loss'' 

for  the  gain.     This  will  be  the  more  evident  when  we  considei 

that  the  Merchandise  clerk  receives  no  Cash  for  the  goods.  The 

receiving  of  money  belongs  to  the  Cash  clerk's  department. 

Merchandise  therefore  is  accountable  only  for  the  goods  that  he 

has  sold,  or  for  the  amount  which  they  cost.     The  profit  on  the 

goods  sold  is  therefore  to  be  considered  in  the  same  light  as 

money  that  has  been  found  or  received  as  a  gift. 

We  will  next  take  for  illustration  a  personal  account.  We 
will  suppose  that  the  clerk  in  charge  of  Smith,  Jones  &  Co's. 
account  be  called  upon  by  Balance  to  settle  the  same.  Upon 
examining  the  account,  he  finds  that  during  the  year  the  amount 
of  S.  J.  &  Go's,  debts  to  him  as  the  agent  of  his  employer,  to  be 
$2,500,  and  the  amount  of  their  credits  Hi, 500.  The  amount 
still  due  by  that  firm  is  therefore  gflOOO.  The  clerk  in  charge 
of  the  account  is  responsible  for  this  amount.  He  rids  himself 
of  the  responsibility  by  delivering  his  claim  upon  said  firm  to 
"Balance."  He  must  get  credit  for  this  transfer;  hence,  "Ba- 
lance"  becomes  his  debtor,  and  the  account  is  closed  by  the 
following  entry:  "By  Balance  ig^lOOO." 

Let  us  suppose,  however,  that  the  account  of  the  same  firm  to 
stand  thus:  amount  of  debits  |5l,500;  amount  of  credits  $2,500; 
leaving  the  clerk  indebted  to  the  firm  in  the  sum  of  .^1000.  Thb 
clerk  can  settle  his  account  in  no  other  way  than  by  ac* 
knowledging  his  indebtedness;  hence,  he  becomes  Dr.  to  Ba- 
lunce,  and  the  closing  entry  will  be  "To  Balance  ig^lOOO." 

We  think  that  the  explanations  which  we  have  given,  or 
rather  those  which  we  have  adopted,  render  the  subject  sufiS 
ciently  clear  to  the  student. 

What  is  the  purpose  of  the  periodtcai  clostng  (f  accounts?  What  method  is 
to  be  adopted  when  the  accounts  are  to  be  reopened  in  the  same  Ledger,  after 
being  closed  1  How  is  an  account  closed  into  Balance  when  the  Dr.^hide  ex- 
ceeds the  Cr.1  When  the  Cr.  side  exceeds  the  Dr.l  What  is  said  of  those  ac- 
counts that  have  but  one  entry  on  k  **»er  side  1 


INTRODUCTORY  EXAMPLES.— FIRST  SERIES. 


61 


INTRODUCTORY  EXAMPLES. 


FIRST  SERIES. 


The  examples  under  this  head  are  designed  to  be  used  pre- 
paratory  to  those  appropriated  for  a  practical  course.  They  will 
serve  as  a  mental  exercise  for  the  learner,  and  will  initiate  him 
into  the  technical  expressions  and  forms  used  in  making  Day 
Book  entries  in  Journal  form,  which  are  usually  denominated 
Journal  entries.  They  will  also  illustrate  what  in  mercantile 
phraseology  is  termed  "opening  a  set  of  books,'' 

We  commence  this  set  of  examples  by  giving  a  statement  of 
^property  and  debts,  which  the  student  is  to  assume  as  his  own. 

When  trading  oxs.  his  individual  account,  "  Stock"  stands  in 
place  of  the  merchant's  name.  It  is  to  be  debited  for  all  his 
liabilities  or  debts y  and  credited  for  all  his  property  or  resources. 
It  is  therefore  his  principal  account. 

In  the  Inventory  which  follows.  Cash  and  Commercial  Bank 
Stock  are  the  debtor  titles  for  the  resources,  and  they  are  de- 
rived from  the  property  which  they  represent.  In  the  article  on 
"  Debtor  and  Creditor,"  we  have  said  that  all  accounts  repre- 
sent the  owner  of  the  books  as  principal,  and  act  in  the  capacity 
of  agents. 

We  have  seen  that  "Stock,"  which  represents  the  merchant 
as  his  principal  agent,  is  debtor  for  the  whole  amount  of  our 
liabilities  in  commencing  trade;  hence  the  creditors  must  be  the 
individuals  or  parties  to  whom  we  are  indebted,  or  the  accounts 
representing  our  obligations.  Each  of  these  accounts  is  creditor 
for  its  respective  share,  and  the  total  of  these  shares  must  equal 
the  amount  of  the  debit. 


i( 


I 


; 


What  is  tlie  desi^  of  the  "  Introductory  Examples  V  How  is  this  series  of 
examples  commenced  ?  How  is  the  inventory  disposed  of?  What  does  '*  Stock** 
represent  %  What  are  entered  on  its  Dr.  side,  and  what  on  its  Cr.  side  %  What 
do  all  accounts  represent?  Show  then  the  propriety  of  the  entries  which  arv 
made  for  cuteta  and  liabilitiea, 

F 


' 


62 


BECKER'S  BOOK-KEEPING. 


[transactions.] 


Philadelphia,  January  2d,  1847. 


Stock  and  Proof  Book. 

Schedule  of  my  Property,  including  a  statement  of  my  Debts,  viz.: 

Remurees, 

Cash,  as  per  dep.  in  Farmers  &  Mechanics  Bank,     .     .     .     2,000,00 
Commercial  Bank  Stock,  20  shares,  par  value  $50  per  share,  1,000.00 

IdabiUtiat. 

I  owe  to  Joseph  Perkins, 125  oo 

do,   onmyaotetoWm-Sterling,  at3moe.,duell— Uinst,     276'oO 


Transactions. — January  3d,  1847. 

Bought  of  Samuel  Morton,  for  Cash, 

600  Bus.  Wheat,  net  487^,    .     .    •    •    «t    .    .    .    .     94  cts. 


-6 


Bought  of  Robert  Clayton,  on  account, 

200  Bbls.  S'fine  Flour, it    ...    .    $4,75, 


-8- 


Sold  to  John  Wood,  for  his  note  at  30  days, 

300  Bus.  Wheat,  net  295,      .     .     .     .     at  $1,  .     .     .   295.00 
100  Bbls.  S'fine  Flour «     4,87^.    .   487,50 


-10- 


Bought  of  George  Rodgers, 

20  Bbls.  Mess  Beef, at  $8     .    .     .     $160,00 

6  Hhds.  Hams,  net  5462  lbs.,     .     .     «  7^  cts,    .     .        409,65 
Delivered  in  Payment,  '  " 

My  note  at  60  days, , 4Q0  qq 

Cash  for  balance, 169  65 

669,65 


I4u 


Sold  to  Biddle  &  Co. 

10  shares  Commercial  Bank  Stock,  par  value  $50  each, 

at    .     .    $53,50    .     .    .     $535,00 

Beeeiped  in  Payment, 

My  note,  Wm.  Sterling's  favour,  now  due,      ....     275,00 
Cash  for  balance, , 260  00 


3,000 


400 


OC 


00 


458 


950 


25 


00 


782 


569 


50 


65 


53500 


I 


INTRODUCTORY  EXAMPLES.— FIRST  SERIES. 
[journal  entries.] 


63 


Philadelphia,  January  2d,  1847. 


1. 


1 
1 
2 

1 

3 
1 


Sundries  Dr.  To 

for  amount  of  my  resources,    .     .     • 

Cash, 

for  my  cash  capital, 

Commercial  Bank  Stock, 

for  20  shares,  par  value  $50  each,  . 


Stock, 


2 

T 


2 
¥ 

1 
2 


.// . 


Stock  Dr.  To  Sundries, 

for  amount  of  my  Uabilities,    ...••... 

To  Joseph  Perkins, 

for  amount  due  him, 

To  Bills  Payable, 

for  my  note,  favour  of  Wm.  Sterling,  at  3  mos ,  due  11 
— 14th  inst. , 

3 


Dr.  To 


Merchandise 

paid  Samuel  Morton, 

for  500  Bus.  Wheat,  net  487^ 


O 


Cash, 

.     94  c 


6 


Merchandise       Dr.  To       Robert  Clayton, 

for  200  Bbls.  S'fine  Flour, .     .     .    .     O    .     .     4,75 


8 


Bills  Receivable       Dr.  To      Merchandise, 

for  sales  to  John  Wood  on  his  note  at  30  days,  . 
300  Bus.  Wheat,  net  295,    ...     (2)     ...     $1 
100  Bbls.  S'fine  Flour,     ....      «    .     .      4,87^ 

10 


Merchandise  Dr.  To 

for  purchase  of  Geo.  Rodgers, 

20  Bbls.  Mess  Beef, .     .     .    O     $8     , 

5  Hhds.  Hams,  net  5462  lbs.,  "     7|  e. 

To  Bills  Payable, 

for  my  note  at  60  days,     •     •    •    •    • 

To  Cash, 

for  balance,     ...     .••••• 
14 


Sundries, 

.     $160,00 
409,65 


1 
1 


Sundries  Dr.  To  Com.  B'k  Stock, 

for  sales  to  Biddle  &  Co.,  10  shares,  par  value 

$50  each, &     .     ,     $63,50 

Bills  Payable, 

for  my  note,  Wm.  Stirling's  fav.  due, 

Cash, 

for  balance, ••.... 


Carried  forward. 


2000 
1000 


400 


458 


950 


295 

487 


569 


275 


260 


6695 


OC 
00 


OC 


25 


00 


00 
51 


65 


00 


00 


3000 


00 


125 


275 


00 


00 


458 


950 


25 


00 


782 


50 


400 
169 


00 
65 


535 


00 


40 


6695 


40 


I 


i: 


It 


64 


BECKER»S  BOOK-KEEPING. 


[transactions.] 


Philadelphia,  January  I6th,  1847. 


Sold  to  Joseph  Perkins, 

50  BbU.  S'fine  Flour,      ....  at  $5,     ...  .  250,00 

10    "       Mess  Beef,     .....  «•     8,50.     .     .  .  85,00 

3  Hhds.  Hams,  net  3340  lbs.,   .     .  «       10  c  .     .  .  334,00 

Received  in  Payment, 

His  receipt  for  a  balance  due  him  on  account,     .     .    .  125,00 
His  Draft  on  Robt  Clayton,  at  sight,  which  is  accepted 

on  accoumt,      . 400,00 

C&sh  for  balance, 144,00 

669,00 

26 

Received  Cash,  for  dividend  on  10  shares  Commercial  Bank 

Stock, 

. -26 

The  Farmers  and  Mechanics*  Bank  has  discounted  John 
Wood's  note  in  my  favour,  due  Feb.  7 — 10,  amount 
$782,50, 

Discount  off,  on  do,  16  days, 2,09 

Cash,  passed  to  my  credit, 780,41 


28 

Paid  to  Robert  Clayton,  the  balance  of  his  account  m  Cash,  .    .    . 

, —31 

Paid  Cash  this  month  as  per  Expense  Book,  viz.: 

Store  Expenses, 15,00 

Clerk's  hire, 30.00 

House  expenses,     ....     • 50,00 


66& 


20 


782 


550 


95 


00 


00 


50 


00 


00 


INTRODUCTORY  EXAMPLES.— FIRST  SERIES. 


[journal  entries.] 


65 


Philadelphia,  January  I6th,  1847. 


Brought  forward. 

Merchandise, 


(9  $5    .    . 

«*      8,50     . 
«         10  c. 


Sundries  Dr.  To 

for  sales  to  Joseph  Perkins, 
50  Bbls.  S'fine  Flour,    .     .     , 
10     "      Mess  Beef,       .     . 
3  Hhds.  Hams,  net  3340  lbs., 

Foseph  Perkins, 

for  balance  of  his  account, 

Robert  Clayton, 

for  his  acceptance  of  Joseph  Perkins's  Draft 
at  sight,  on  account, ........ 

Cash, 

for  balance,      ••.••..... 


250,0( 

85,0( 

334,0( 


.     .     . 


25 


Cash  Dr.  To  Com.  B'k  Stock, 

received  dividend  on  10  shares, 


26 


Sundries  Dr.  To         Bills  Receivable, 

for  John  Wood's  note,  my  fav.,  due  Feb.  7 
— 10,  discounted  at  the  Farmers  &  Me- 
chanics' Bank, 

Interest, 

for  16  days  discount  on  do 

Cash, 

for  net  amount  passed  to  my  credit,      ..... 


28 


Robert  Clayton  Dr.  To 

paid  him  Uie  balance  of  his  account. 


Cash, 


81 


Expense  Dr.  To  Cash, 

for  this  month's  disbursements  as  per  Ex- 
pense Book, 


6695 


12; 

400 
144 


20 


2 

780 


550 


95 


8811 


40 


0(1 

00 
00 


00 


09 

41 


00 


00 


9P 


6695 


40 


609 


20 


782 


550 


95 


8811 


00 


00 


50 


00 


00 


90 


V2 


9 


.>; 


II 


66 


BECKER'S  BOOK-KEEPING. 


DIRECTIONS  FOR  THE  INTRODUCTORY  SERIES. 

For  the  purpose  of  copying  the  transactions  contained  in  the 
Introductory  set,  let  the  student  prepare  a  sheet  of  paper  by 
ruling  it  with  double  money  columns  on  the  right,  and  a  narrow 
margin  on  the  left  hand  side.  Having  copied  the  examples,  let 
him  rule  in  the  same  manner  another  sheet,  on  which  he  should 
copy  from  the  first  sheet  the  same  entries  in  Journal  form.  This 
form  is  exemplified  on  the  pages  opposite  to  the  transactions 
which  belong  to  this  series.  In  proceeding  with  this  exercise, 
he  must  make  use  of  the  forms  and  expressions  contained  in  the 
Journal  page,  and  he  must  so  apply  the  rules  for  Journalizing, 
that  he  will  be  able  to  see  in  every  case  why  such  an  account  is 
made  Dr.,  and  such  a  one  Cr.  He  must  also  notice  that  the 
amount  of  the  creditor  or  creditors  in  each  instance  is  equal  to 
that  of  the  debtor  or  debtors. 

The  student  should  continue  this  copying  exercise  till  he  is 
able,  without  assistance  from  books  or  from  his  teacher,  to  make 
correctly,  in  Journal  form,  all  entries  arising  from  the  examples 
constituting  his  copy  of  transactions. 

Having  completed  satisfactorily  his  work,  according  to  the 
foregoing  directions,  he  should  proceed  to  prepare  his  Ledger. 
Let  him  rule  a  sheet  of  paper  in  Ledger  form,  appropriating  one 
third  of  a  page  to  each  account.  The  number  and  arrangement 
of  the  perpendicular  columns  may  be  seen  by  referring  to  the 
Ledger  forms  in  this  work.  We  have  elsewhere  stated  that  the 
purpose  of  this  book  is  to  show,  under  the  several  heads  termed 
Ledger  captions,  or  titles  of  accounts,  the  cost  incurred  on  each 
account,  or  its  obligation  to  the  person  who  keeps  it,  and  the 
amount  each  has  produced,  or  his  obligation  to  it.  The  left 
hand  side  of  the  Ledger  page,  or  Dr.  side,  shows  the  former,  and 
the  right  hand,  or  Cr.  side,  the  latter.  To  make  the  Ledger 
serve  for  this  purpose,  entries  must  be  made  in  this  book,  in  ac- 
cordance  with  those  made  in  the  Journal,  or  in  other  words, 
care  must  be  taken  to  do  what  is  technically  termed  posting  up 
the  accounts. 


EXAMINATION  Or  THE  LEDGER.  67 

POSTING. 

The  directions  necessary  for  posting  are  the  following: — In 
the  date  column,  on  the  Dr.  side  of  the  account,  write  the  date 
of  the  transaction.  In  the  second,  or  title  column,  write  the 
word  "  7b,"  and  add  the  title  of  the  Cr.  caption  in  the  Journal 
entry.  In  the  narrow  column  next  before  the  money  columns, 
place  the  figure  denoting  the  Journal  folio  from  which  the  item 
was  brought.  Place,  in  the  money  columns,  the  sum  for  which 
the  account  is  Dr.;  and,  lastly,  place  in  the  first,  or  margin 
column  of  the  Journal,  the  folio  of  the  Ledger  account. 

The  accounts  credited  in  the  Journal  have  entries  made  on 
the  Cr.  side  of  the  Ledger  account  in  the  same  manner  as  those 
on  the  Dr.  side,  with  this  exception,  that  instead  of  writing  "  Tb," 
we  write  ''By,"  and  add  the  Dr.  caption  of  the  Journal  entry. 
By  this  method  no  posting  will  occupy  more  than  one  line;  all 
explanations  are  to  be  excluded  from  the  Ledger. 

What  preparation  must  be  made  for  copying  the  transactions  ot  this  senes? 
What  is  the  purpose  of  the  second  sheet  which  the  student  is  to  rule  ?  What 
is  required  of  the  student  in  proceeding  with  this  exercise  t  Hoa<^  long  is  it 
necessary  for  him  to  continue  the  copying  exercise  ?  How  is  the  Ledger  to  be 
ruled  ?  What  is  the  purpose  of  the  Ledger  1  What  does  the  Dr.  side  of  each 
account  in  the  Ledger  show  I  What  the  Cr.  side!  Give  the  directions  ne- 
cessary for  posting  the  items  debited  in  the  Journal.  Do  the  same  for  those 
credited. 


,ii 


;1 


•  M 


«  m»^  *- 


EXAMINATION  OF   THE  LEDGER. 

The  posting  being  finished  the  next  duty  is  to  examine  the 
Ledger  entries,  and  carefully  compare  them  with  those  of  the 
Journal,  from  which  they  are  derived.  In  real  business,  in 
order  that  this  operation  may  serve  for  the  purpose  of  detecting 
errors  that  may  exist  in  the  postings,  it  is  proper  that  one  per- 
son should  take  the  Ledger,  and  another  the  Journal.  Let  the 
latter  person  read  off  the  folio  of  the  Ledger  account,  the  title 
of  the  account  to  which  it  is  Dr.,  or  by  which  it  is  Cr.,  and  the 
amount;  then  let  the  former  person  examine  the  Ledger  entry, 
and,  if  it  be  correct,  let  him,  with  a  lead  pencil,  mark  on  the 


63 


BECKER'S  BOOK-KEEPING. 


double  red  line  of  the  money  column,  this  mark  (  %/'  )  and  place 
a  similar  mark  before  the  item  thus  examined  in  the  Journal. 

This  operation  will  bring  to  light  such  mistakes  as  do  no^ 
affect  the  Trial  Balance y  a,nd  do  not  disturb  the  equality  which 
should  exist  between  the  monthly  aggregate  of  the    Ledger 
debits  and  credits,  and  that  of  the  Journal  debits  and  credits. 
The  following  are  errors  of  this  nature — 

1.  A  sum  posted  to  a  wrong  account,  but  on  the  same  side 
of  the  Ledger  as  that  to  which  it  belongs. 

2.  A  Journal  entry  posted  twice,  and  the  posting  of  another 
Journal  entry  of  the  same  amount  omitted. 

All  mistakes   should  be  corrected  immediately  after   theii 
discovery. 

What  is  to  be  done  when  the  posting  is  finished  1  How  is  this  work  per- 
formed in  real  business?  What  is  its  usel  Mention  the  kinds  of  error  that 
may  be  detected  by  this  examination.  At  what  time  should  errors  be  cor- 
rected 1 


■■-  ♦#♦ » 


CORRECTION  OF  ERRORS. 

1.  If  a  Journal  item  or  whole  entry  has  been  omitted,  post 
it  on  the  first  vacant  line  of  the  Ledger  account,  with  the  proper 
date  and  folio,  and,  after  the  posting,  write  the  word  "  omittedy^* 
so  that  the  consequent  derangement  in  the  order  of  the  dates 
may  be  accounted  for.  / 

2.  If  an  item  has  been  posted  to  a  wrong  account,  or  to  the 
wrong  side  of  an  account,  make  ciphers  of  the  figures,  and 
let  the  remainder  of  the  entry  stand,  so  that  the  Ledger  will 
not  be  defaced,  then  post  the  entry  in  its  proper  place.  Or,  the 
error  may  be  corrected  thus :  if  the  wrong  entry  be  on  the  Dr 

side,  write  on  the  Cr.  side, "  By  error  other  side,  $ ;"  or,  if  it 

be  on  the  Cr.  side,  write  on  the  opposite  side,  "  To  error  other 
side  1$ ;"  then  post  the  entry  in  its  proper  place. 

3.  If  a  wrong  amount  has  been  posted,  correct  the  amount, 
or  resort  to  the  method  just  explained. 

A,  If  a  duplicate  posting  has  been  made,  make  ciphers  of 
the  figures  in  the  erroneous  one. 

5.  If,  in  postings  a  wrong  title  has  been  written  in  the  title 


PROOF  OF  THE  LEDGER. 


69 


column^  alter  the  title,  or  draw  a  line  under  it  with  red  ink,  to 
denote  that  it  is  incorrect,  and  let  it  stand.    ^ 

An  error  in  Journalizing  should  generally  be  corrected  by  an 
entry  in  the  Journal;  sometimes  an  alteration  is  allowable. 

An  erroneous  entry  in  the  books  of  original  entry  should  be 
;orrected  by  another  entry,  or,  if  not  Journalized,  it  may  be 
iirjitten  across  thus — "  Error"  or  "Void.'* 

How  should  the  error  be  corrected  when  a  Journal  item,  or  a  whole  entry 
nas  been  omitted  ?  How  when  an  item  has  been  posted  to  a  wrong  account, 
or  to  the  wrong  side  of  an  account?  How  when  a  wrong-  amount  has  been 
posted  ?  How  when  a  duplicate  posting  has  been  made  ?  How  when  a  wrong 
title  has  been  written  in  the  title  column?  How  should  an  error  in  Journaliz- 
ing generally  be  corrected  1  In  what  ways  may  an  erroneous  entry  in  the  book« 
•f  original  entry  be  corrected  I 


-  ♦  •  •  » 


PROOF  OF  THE  LEDGER. 

Having  compared  the  Ledger  with  the  Journal,  and  corrected 
all  errors  that  have  been  detected  by  that  examination,  the 
learner  will  perhaps  conclude  that  the  Ledger  is  perfectly  cor- 
rect, and  therefore  needs  no  further  proof.  But  he  should  not 
be  too  confident.  It  is  necessary  that  the  correctness  of  the 
Ledger  should  be  still  further  tested. 

Once  a  month,  therefore,  a  proof  of  the  Ledger  should  be 
taken,  to  ascertain  whether  the  amount  of  debits  is  equal  to  the 
amount  of  credits  that  have  been  posted;  or,  in  other  words, 
whether  the  whole  Ledger  balances.  If  the  Ledger  be  correct, 
the  general  footing  of  both  sides  of  it  must  be  equal  to  that  in 
the  Journal. 

For  the  purpose  of  taking  this  proof  of  the  Ledger  or  Trial 
Balance,  as  it  is  more  frequently  called,  add  up  the  sums  on 
the  Dr.  side  of  each  account  in  the  Ledger,  and  place  the  sum 
to  the  left  of  the  money  column,  with  a  pencil.  Do  the  same 
on  the  Cr.  side  of  each  account.  Then  prepare  a  sheet  of  paper 
in  the  following  form,  on  which,  copy  from  the  Ledger,  all  the 
accounts  in  their  regular  order,  with  their  Ledger  folios  preced- 
ing them,  and  their  respective  total  debits  and  credits  following 
them.     The  following  is  the  form. 


Ii 


u 


70 


UJ^'UKiiRS  UUU&.KJiIEPING. 


TRIAL  BALANCE. 


Ledger 
FoUo. 

Titles  of  Accounts. 

Monthlv  Dr. 
Totals. 

Monthly  Cr. 
Totals. 

Having  completed  the  transcript  from  the  Ledger,  add  up  the 
amounts  in  the  money  columns;  if  the  Ledger  be  correct,  and 
no  errors  have  been  committed  in  copying,  the  total  on  both  sides 
will  be  the  same. 

As  the  "  Trial  Balance"  involves  the  principle  of  equilibrium 
between  the  Drs.  and  Crs.  in  every  Journal  entry,  it  is  evident 
that  if  every  item  be  correctly  posted,  the  sum  of  the  debits  in 
the  Ledger  must  be  equal  to  that  of  the  credits.  If  this  equality 
does  not  exist,  a  mistake  has  been  made  in  the  posting.  It  is 
then  iic^^essary  to  ascertain  on  which  side  lies  the  mistake,  in 
order  that  the  same  may  bt;  detected.  This  can  be  ascertained ; 
because,  if  the  Journal  has  been  correctly  footed  in  every  page, 
and  the  footings  have  been  carried  forward  fron^  page  to  page, 
to  the  end,  (which  operation  is,  by  some  persons,  often  neglected 
in  actual  business,)  the  total  footings  of  the  "  Trial  Balance," 
if  correct,  must  agree  with  those  of  tiie  Journal.  That  side  of 
the  "  Trial  Balance,"  therefore,  which  differs  in  its  aggregate 
amount  from  the  same-  side  of  the  Journal,  points  out  to  us  the 
side  of  the  Ledger  which  contains  the  error. 

The  "Trial  Balance"  then  should  prove,  not  only  that  the 
postings  of  the  Drs.  and  Crs.  are  equal  in  amount,  but  also,  that  if 
all  the  amounts  in  the  Ledger  have  been  included  in  it,  no  entry 
has  been  overlooked  in  posting,  and  none  has  been  twice  posted. 

If  the  Journal  be  not  thus  used  as  a  check  upon  the  Ledger, 
it  may  be  a  work  of  great  labour  to  ascertain  where  error  exists. 
The  apparent  amount  of  error  as  exhibited  by  the  "Trial 
Balance"  may  be  but  a  few  cents ;  still,  this  is  an  error  which 
must  be  corrected.  In  re-examining  the  postings  with  a  view 
of  detecting  it,  it  frequently  happens  that  the  apparent  diflference 
is  not  the  real  difference,  but  that  the  former  increases  as  we 
proceed,  and  thus  exhibits  the  necessity  of  obtaining  an  equality 
in  the  amounts  of  the  two  sides.  When  the  difference  between 
tnc  two  sides  of  the  "  Trial  Balance"  consists  in  the  increase 
of  anv  figure  on  one  side  by  unity,  over  the  corresponding 


INVENTORY. 


71 


figure  on  the  other,  it  will  generally  be  found  that  the  error  is 
in  the  addition  of  the  columns;  but  where  the  amounts  difler  in 
several  figures,  the  error  may  be  referred  either  to  the  posting, 
or  to  the  copying  from  the  Ledger  to  the  «  Trial  Balance."  As 
all  this,  however,  is  mere  conjecture,  it  is  necessary  that  the 
whole  should  be  re-examined. 

What  additional  precaution  should  be  taken  to  insure  the  correctness  of  the 
Ledger  1  What  is  the  special  object  of  a  proof  of  the  Ledger?  What  is  the  first 
step  in  taking  a  proof  of  the  Ledger,  or  Trial  Balance  ?  Describe  the  form  of 
the  Trial  Balance  Sheet.  Show  how  it  is  used.  What  is  the  principle  upon 
which  it  is  based  1  If  an  error  has  been  made  in  the  posting,  what  is  the  first 
Btep  towards  correcting  it  ?  How  can  we  ascertain  on  which  side  it  is  1  What 
then  will  a  correct  Trial  Balance  prove  ?  Show  the  importance  of  using  th« 
Journal  as  a  check  upon  the  Ledger.  Is  it  advisable  to  rely  upon  mere  con- 
jecture  in  relation  to  the  seat  of  error  ? 


ill 


INVENTORY. 

The  validity  of  the  Ledger  accounts  having  been  established 
by  the  test  of  the  "  Trial  Balance,"  the  student  is  prepared  to 
proceed  with  confidence  to  ascertain  the  profits  or  losses  that 
have  accrued  from  the  business. 

For  this  purpose  he  must  take  what,  in  mercantile  phraseology, 
is  called  "  An  Account  of  Stock,"  or,  in  other  words,  make  out 
an  Inventory  or  Statement  of  all  the  property  remaining  ou 
hand  unsold.  In  actual  business  this  is  usually  made  in  the 
«  Stock  Book"  by  reference  to  the  goods  in  the  store,  and  in  the 
importing  business,  the  account  of  stock  is  afterwards  compa^^d 
with  the  books. 

In  this  series  we  depend  upon  the  books  for  making  the  In 
ventory.  To  make  it  correctly,  the  student  should  comply  with 
the  following  direction :— Take  a  single  piece  of  paper  and  divide 
it  by  a  vertical  line  in  the  centre  ;  then  turn  to  the  account  of 
Merchandise  in  the  Ledger,  and  from  each  debit  item  refer  to 
the  Journal,  in  order  to  ascertain  the  gross  and  net  quantity  of  the 
goods  purchased,  with  the  cost  prices  of  the  same.  Place  these 
on  the  left  hand  side  of  the  paper.  The  several  amounts  of 
goods  sold,  with  their  selling  prices,  can  be  ascertained  in  the 
same  manner;  these  are  to  be  recorded  on  the  right  hand  side 
of  the  paper.  This  part  of  the  work  being  finished,  take  up  the 
first  article  mentioned,  and  deduct  the  total  gross  and  net  quan- 


I 


72 


BECKER'S  BOOK-KEEPING. 


BALANCING  AND  CLOSING  THE  LEDGER. 


73 


tity  of  the  sa  es  of  this  article  from  the  gross  and  net  quantity 
of  the  purchasers  of  the  same.  In  this  manner  proceed  with 
every  article  of  purchases  and  sales  contained  in  the  paper.  The 
excess  of  the  purchases  over  the  sales,  in  each  case,  constitutes 
the  balance  of  the  article  on  hand.  These  balances  should  be 
entered  on  another  piece  of  paper,  in  the  following  manner: 

Philadelphia,  Januray  31*/,  1847. 


Inventory  of  property  remaining  on  hand 
unsold,  taken  this  day,  viz: 
Merchandise, 

200  Bus.  Wheat,  net  192^ 94c 

50  Bbls.  S'fine  Flour, $4,75 

10     «     Mess  Beef, 8,00 

2  Hhds.  Hams,  2122  lbs., T^c. 

Commercial  Bank  Slock, 

10  shares,  par  value  $50  each,  ....... 


180 

237 

80 

169 


96 
60 
00 
15 


657 


500 


60 


00 


1157  60 


All  representative  accounts  arising  from  effects  or  property, 
and  which  are  kept  for  the  purpose  of  showing  gains  or  losses, 
must  be  examined  in  the  same  manner  as  merchandise  account. 
The  property  unsold  constitutes  the  "  Balance^^  of  such  ac- 
counts, and  it  must  be  entered  in  the  Inventory  for  its  cost  or 
present  worth. 

When  the  Ledger  has  been  ascertained  to  be  correct,  what  is  the  next  work 
to  be  done  1  How  is  it  commenced  1  What  is  meant  by  an  account  of  stock? 
Hfw  is  it  taken  in  actual  business  ?  How  in  this  series  ?  Give  the  directions 
to  be  observed  preparatory  to  making  an  Inventory  of  the  property  on  hand 
unsold  1  How  is  the  amount  of  the  various  kinds  of  property  on  hand  ascer- 
tained by  this  means?  Describe  the  form  of  the  Inventory.  How  is  the 
property  on  hand  to  be  valued  in  the  Inventory! 


«  •  •  •  > 


BALANCING  AND  CLOSING  THE  LEDGER. 

Having  finished  the  Inventory,  and  proved  its  correctness, 
the  student  is  prepared  to  determine  the  gains  and  losses  that 
have  accrued  in  the  course  of  trade.  Let  him  refer,  first,  to 
those  accounts  which  have  been  examined  in  making  the  In- 
ventory, and  which  show  balances  or  effects;  and,  then,  to  thosft 
^which  are  closed  into  "  Profit  and  Loss"  for  the  difference. 


The  first  account,  then,  which  we  take  is  Merchandise.  In  this 
series,  the  Dr.  side  shows,  for  purchases,  Si, 977,90,  and  the  Cr. 
side,for  sales,  $1,451.50.  Add  to  the  latter  amouat,  in  lead  pencil, 
|i657.60,  for  value  of  goods  unsold,  and  deduct  from  the  sum  the 
whole  outlay.  The  difference,  {$131.20)  is  the  gain  on  the  goods 
sold. 

The  same  result  can  be  obtained  in  another  way.  By  de- 
ducting the  value  of  the  goods  on  hand  from  the  amount  of 
purchases,  the  cost  of  the  goods  that  have  been  sold  will  be  ob- 
tained. The  difference  between  this  and  the  amount  for  which 
they  were  sold  will  be  the  gain.     Thus, 

1.  The  purchases  are  ig>l,977.90      2.  Amount  of  sales  $1,451.50 
Deduct  goods  on  hand        657.60         Deduct  cost  1,3^20.30 

Cost  of  goods  sold         $1,320.30        Gain,  as  before      $131.20 

The  gain  on  "  Commercial  Bank  Stock"  is  to  be  examined 
in  the  same  way,  and  all  accounts  of  the  same  nature,  such  as 
Real  Estate,  Ships,  Railroad  and  Navigation  Stock,  Shipments 
or  Adventures,  and  Speculation  accounts  are  adjusted  in  a  like 
manner.  In  all  these  cases  the  present  value  of  the  property 
unsold  is  the  "  Balance"  of  the  account,  and  must  be  entered  on 
and  added  to  the  Cr.  side.  The  difference  between  the  sides  is 
the  gain,  when  the  Cr.  side  exceeds  the  Dr.,  which  difference 
must  be  added  to  the  Dr.  side.  If,  however,  the  Dr.  side  exceed 
the  Cr.  th6  difference  is  the  loss,  and  it  must  be  added  to  the  Cr., 
side.  When  no  returns  have  been  received  from  the  property, 
the  total  of  the  Dr.  side  is  the  Balance. 

At  every  general  Balance  the  account  of  Expense,  Interest, 
and  all  others  of  a  like  character,  are  to  be  closed  into  "  Profit 
and  Loss,"  for  the  difference  between  the  two  sides. 

Cash,  Bills  Receivable,  and  Bills  Payable  represent  the 
mediums  employed  in  all  trading  operations,  and  the  personal 
accounts  represent  the  business  on  credit.  The  difference  be 
tween  both  sides,  in  all  these  accounts,  constitutes  either  effects 
or  debts,  and  the  accounts  are  therefore  closed  "  To"  or  **  By 
Balance,"  as  the  case  may  be. 

Before  making  the  closing  entries  in  the  Ledger,  a  "Balance 
SheeV^  must  be  taken.     For  this  purpose  rule  a  sheet  of  paper, 
and  head  it  as  in  the  following  form. 
G  10 


I 


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BECKER'S  BOOK-KEEPING. 


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DIRECTIONS  FOR  THE  BALANCE  SHEET.  75 

The  following  are  the  directions  for  the  "Balance  Sheet;'* 

Having  ruled  the  "Balance  Sheet"  according  to  the  above 
form,  copy  into  it  the  Trial  Balance,  placing  the  amounts  of  each 
account  in  the  columns  headed  "Face  of  Ledger;''  then, enter 
the  estimated  value  of  the  property  unsold,  as  per  Inventory 
Book.  These  amounts  are  to  be  entered  with  red  ink  in  the 
column  marked  "Property  unsold,"  and  opposite  the  title  of  the 
account  to  which  they  respectively  belong.  In  the  "  Profit  and 
Loss"  columns,  place  the  amounts  of  the  gain  or  loss  on  the 
several  accounts.  Take  from  the  Ledger  the  balances  of  all  the 
accounts  that  close  into  Balance.  Insert  the  difference  of  both 
sides  of  Stock  in  the  "Stock"  columns  as  above,  and  the  Ba- 
lance of  all  other  accounts  except  Profit  and  Loss,  in  the  Ba- 
lance column.  The  amounts  of  the  Balance  of  those  accounts 
which  are  closed  "To  Balance"  in  the  Ledger,  are  inserted  on 
the  Cr.  side  of  the  Balance  column,  in  the  Balance  Sheet,  and  in 
those  accounts  which  are  closed  "By  Balance,"  it  is  inserted  on 
the  Dr.  side  of  the  Balance  column^  opposite  the  title  of  the  ac 
count. 

Being  thus  prepared  to  close  the  Balance  Sheet,  add  up  the 
Dr.  and  Cr.  side  of  Profit  and  Loss  column,  placing  the  amounts 
as  above,  and  close  it  for  the  diflference,  into  Stock.  Add  up  the 
Dr.  and  Cr.  sides  of  Balance  column,  placing  the  amounts  as 
above,  so  as  to  show  the  total  resources  and  liabilities.  Close 
this  column  into  Stock,  for  the  difierence,  which  must  prove 
equal  to  the  Balance  of  Stock.  Balance  the  Stock  column  in 
the  same  way,  and,  if  it  prove  correct,  the  Balance  Sheet  is 
finished.  For  all  these  closing  entries,  corresponding  entries 
must  be  made  in  the  Journal,  and  posted  to  the  proper  accounts 
in  the  Ledger. 

We  give  here  the  closing  entries  in  the  Transactions  and 
Journal,  as  obtained  from  the  preceding  Balance  Sheet.  Our 
object  in  separating  them  from  the  other  entries  in  these  books 
is  that  the  student  may  not  be  induced  to  copy  them  before 
reading  the  explanations  and  directions. 


76 


BECKER'S  BOOK-KEEPING. 


[transactions.] 


Philadelphia,  January  31*/,  1847. 


Statement  of  Closing  Entries, 

On  examination  of  the  Balance  Sheet,  I  find  that  the  following  ac- 
counts have  produced  gains,  the  net  amount  of  which  is.     $186,li0 


Merchandise, 

Amount  of  sales  being  .     , $1451,50 

Balance  of  goods  remaining  on  hand  valued 

as  per  Inventory, 657,60   $2109,10 

Amount  of  cost  being ~~,    ^i    '.     1977  90 

Commercial  Bank  Stock,  '- 

Amount  of  Cr.  side  being $555,00 

Balance  of  10  shares  remaining  on  hand  as 

per  Inventory 500,00  $1056,00 

Amount  of  Dr.  side  being .  "I    I    !     1000,00 


The  same  Sheet  exhibits  losses  on  the  following  accounts,  amounting 
in  all  to  $97,09 

Interest, 

Expense, 


Profit  &  Loss  prc«iont8  a  balance  in  favour  of  Stock,  for  this  amount, 
being  the  total  net  gain  of  my  business  this  month, 


13120 


65 


00 


2 
95 


89 


09 
00 


11 


CLOSING  ENTRIES— FIRST  SERIES. 


[journal  entries.] 


Philadelphia,  January  31^/,  1847. 


Sundries  Dr.  To  Profit  &  Loss, 

for  gains  on  the  following  accounts  amounting  to    . 

Merchandise, 

for  gain  on  this  account, 

Commercial  Bank  Stock, 

for  gain  on  this  account,    . 


Profit  &  Loss  Dr.  To  Sundries, 

for  losses  on  the  following  accounts  amounting  to  . 
To  Interest,  for  losses  on  this  account,      .... 

To  Expense,     *«       «       «       «        .... 


Profit  &  Loss  Dr.  To  Stock, 

for  total  net  gain  of  my  business  this  month,      .     . 


131 '20 


55 


97 


89 


00 


09 


11 


G2 


T7 


186 


2C 


2 
95 


89 


I 


09 
00 


11 


L 


1  i 


■VQ 


BECKER'S  BOOK-KEEPING. 


The  learner  will  now  balance  all  the  accounts  in  the  Ledger 
according  to  the  "periodical  form  of  balancing  accounts,"  and 
for  directions  for  the  same  he  should  consult  the  article  on  that 
subject. 

In  proceeding  to  ascertain  tl^e  gains  or  losses  en  the  various  accounts,  what 
order  should  be  adopted  1  What  account  is  taken  first  1  How  is  the  gain  on 
this  account  ascertained  1  Name  some  of  the  other  accounts  that  are  to  be  ex 
amined  in  the  same  way.  In  all  these  accounts  on  which  side  must  the  Ba 
ianee  of  property  on  hand  be  entered  1  How  can  we  tell  whether  an  account 
has  produced  a  gain  or  loss 7  How  are  these  accounts  to  be  balanced  when 
the  gain  or  loss  has  been  ascertained  ?  What  accounts  besides  those  already 
named  are  closed  into  Profit  and  Loss  1  What  accounts  are  closed  into  Ba- 
lance? Whyl  Before  making  the  closing  entries  in  the  Ledger,  what  is  to 
be  done  1  Describe  the  form  of  ruling  the  Balance  Sheet.  Describe  the  use 
of  the  first  three  columns.  What  is  the  use  of  the  "  Property  unsold"  column, 
and  how  are  the  amounts  to  be  entered  in  iti  How  is  the  "  Profit  and  Loss" 
column  to  be  used  1  The  "  Stock"  column  1  The  **  Balance"  column  1  When 
the  Balance  Sheet  has  been  filled  up,  what  column  should  the  student  close 
first?  How  is  it  to  be  closed  1  What  column  is  next  to  be  closed,  and  how  t 
What  is  the  last  column  to  be  closed  1  Into  what  is  it  closed  1  How  do  the 
closing  entries  of  Stock  and  Balance  check  each  other?  When  the  Balance 
Sheet  has  been  closed,  what  is  to  be  done  ? 

How  is  it  proposed  to  illustrate  the  principles  upon  which  the  directions  for 
haianetng  are  founded?  What  duty  is  assigned  to  the  clerk  denominated  "  Ba- 
lance ?"  Describe  the  relations  that  arise  between  him  and  **  Cash."  De- 
scribe from  this  the  closing  entry  of  Cash  account  Show  the  relations  that 
exist  between  "  Balance"  and  "  Merchandise."  Derive  from  them  one  of  the 
closing  entries  of  Merchandise  account.  W^hat  is  the  business  of  "  Profit  and 
Loss"  with  clerk?  What  then  is  the  other  closing  entry  of  Merchandise  ac- 
count ?  Take  for  illustration  d,  personal  account  in  which  the  Dr.  side  exceeds 
the  Cr.  and  show  the  application  of  the  principles  that  have  been  laid  down 
Take  the  same  «ccount  with  the  Cr.  side  exceeding  in  amount  the  Dr. 


LEDGEK. 


79 


LEDGER  TO  THE  INTRODUCTORY  SERIES. 


1. 
Dr.                                      Stock.                                     Cr, 

1847. 
Jany.  2. 
«       31. 

To  Sundries 
«  Balance 

1 

r 

400  00 

2689  11 

1 

1847. 

Jany.  2.    By  Sundries 

«       31.    «   Profit  6l  Loss 

1 

1 

1 

1 
3 

3000 
89 

00 
11 

3089*11 

Feb.  1. 

3089  11 

By  Balance 

268911 

Dr.                                       Cash.                                      Cr. 

1847. 
Jany.  2. 

«      14. 

«      16. 

«      25. 

«     26. 

Feb.  1. 

To  Stock 
«  Com.  B'k.  Stock 
«  Mdse. 

«  Cora.  B'k.  Stock 

«  Bills  Receivable 

3,204,41 

1 
« 

2 

(( 

2000 

260 

144 

20 

780 

00 
00 
00 
00 
41 

1847. 
Jany.  3. 

«      10. 

«     28. 

«»     31. 

By  Mdse. 
"       do. 

«*    Robt  Clayton 
«    Expense 

1,272,90 
«  Balance 

1 
(( 

2 

458 

169 

550 

95 

1931 

25 
65 
00 
00 

51 

3204 

41 

3204 

41 

To  Balance 

1931 

51 

Dr,     •                 Bills  Receivable.                     Cr. 

1847. 
Jany.  8. 

To  Mdse. 

1 

782 

50 

1847. 
Jany.  26. 

By  Sundries 

2 

782 

50 

Dr.                      Bills  Payable.                       Cr. 

1847. 
Jany.  14. 
«       31. 

To  Com.  B'k.  Stock 
"   Balance 

! 

1 

275 
400 

675 

00 
00 

00 

1847. 
Jany.  2. 
«      10. 

Feb.  1. 

By  Stock 
«   Mdse. 

675,00 

1 

275 
400 

00 
00 

676 

00 

Bi/  Balance 

400 

00 

80 


BECKER'S  BOOK-KEEPING. 


Dr, 


Profit  ^  Loss. 


Cr,    \ 


1847. 
Jany.  31. 

M  U 


To  Sundries 
'«   Slock 


97 


09 


89  11 


186i30 


1847. 
Jany.  31 


By  Sundries 


T 


186 


20 


186 


20 


Br, 


Interest. 


Cr. 


1847. 
Jany.  26. 


To  Bills  Receivable 


09 


1847. 
Jany.  31. 


By  Profit  &  Loss 


3 


09 


Br, 


Expense. 


Cr. 


1847.       1 

Jany.  31.  To  Cash 


95 


00 


1847. 
Jany.  31. 


By  Profit  &  Loss 


95 


00 


Dr. 


Merchandise. 


Cr. 


1847. 
Jany.  3. 

"     6. 

"     10. 

«     31. 


Feb.  1. 


To  Cash 
"    Robt.  Clayton 
«   Sundries 

1,977,90 
"   Profit  <Sc  Loss 


To  Balance 


458 
950 
569 

131 


2109 


667 


25 

00 
65 

20 


10 


60 


1847. 
Jany.  8. 
«      16. 


(( 


31. 


By  Bills  Receivable 
<*  Sundries 

1,451,50 
"  Balance 


782 
669 

657 


50 
00 

60 


2109  10 


J. 


Br, 


Commercial  Bank  Stock. 


Cr. 


1847. 
Jany.  2. 
«     3L 


Feb,   1. 


To  Stock 
«<  Profits  Loss 


To  Bakmee 


1000 
55 


1055 


00 
00 


00 


500 


00 


1847. 

Jany.  14. 

«     25. 

"      31. 


By  Sundries 
«   Cash 


«  Balance 


555,00 


535 

20 

500 


00 
00 

00 


1055  00 


SECOND  SERIES. 


SI 


3. 

Br,                       Josqph  Perkins.                        Cr. 

1847. 
Jany.  16. 

To  Mdse. 

2 

125  00 

1847. 
Jany.  2, 

By  Stork 

1 

125  00 

1 

I 

1 
1 

Br.                      Robert  Clayton.                      Cr. 

1847. 
Jany.  16. 
28. 

To  Mdse.  {Dft.) 
«   Cash 

2 

« 

400  00 
550  00 

1847. 
Jany.  6. 

By  Mdse. 

I 

950 

00 

^^ 

SECOND  SERIES. 

This  series  is  divided  into  two  parts,  and  in  it  the  student  is 

represented  as  having  engaged  in  the  grocery  business  on  his 
own  account. 

The  hooks  used  are  the  Blotter,  Cash  Book,  Bill  Book,  Jour- 
nal, and  Ledger.  The  first  three  of  these  contain  the  original 
entries  of  all  the  transactions  proposed  in  the  "  Examples  of 
Transactions."  The  entries  are  to  he  recorded  in  these  several 
Day  Books,  according  to  the  following  description : 

The  Blotter,  in  this  series,  contains  the  record  of  all  purchases, 
sales,  and  other  transactions.  These  should  he  arranged  under 
Dr.  and  Cr.  titles,  with  the  necessary  explanations  according  to 
the  Journal  form  of  the  Introductory  Examples. 

The  Cash  Book  contains  the  original  entries  of  moneys  re- 
ceived and  paid.  The  entries  in  this  book  are  Journalized  at 
the  end  of  the  month.  In  actual  business  they  may  be  Jour- 
nalized  oftener,  according  to  the  nature  and  demands  of  the 
business. 

The  Bill  Book  contains  the  original  entries  of  all  Bills  Re- 
ceivable and  Bills  Payable,  from  which  entries  are  made  in  the 
Blotter,  at  the  time  they  are  received  or  passed  away.  But, 
when  a  Bills  Receivable  is  received,  and  we  pay  cash  for  it, 

11 


82 


BECKER»S  BOOK-KEEPING. 


that  is,  discount  it,  or  when  we  redeem  our  notes  or  acceptance 
in  cash,  an  entry  of  the  transaction  is  made  in  the  Cash  Book. 
In  opening  this  series  the  student  should  be  guided  by  the  di 
rections  following. 

Copy  the  Stock  and  Proof  Book  on  a  piece  of  paper,  and  from 
that  Journalize  and  post  them,  as  in  the  previous  series.  This 
being  done,  enter  the  balance  of  cash  on  hand  on  the  Dr.  side 
of  the  Cash  Book,  in  this  manner:  Feb.  1st.,  To  amount  on 
deposite  in  Philadelphia  Bank,  igl5,000,00.  The  notes  forming 
a  part  of  the  capital  or  assets  on  entering  into  business,  must 
be  recorded  in  the  Bill  Book,  under  the  head  of  Bills  Receivable 
and  notes  given  out  and  not  yet  paid,  under  the  head  of  Bills 
Payable.  When  the  above  entries  are  completed,  the  books  are 
said  to  be  opened. 

The  Balance  of  the  recapitulation  in  the  Stock  and  Proof 
Book  shows  the  student's  present  worth,  or  net  capital,  on  com- 
mencing; the  amount  of  which  will  agree  with  the  balance  of 
"  Stock"  in  the  Ledger,  when  the  inventory  of  resources  and 
liabilities  is  Journalized  and  posted. 

In  this  series  we  dispense  with  the  Sales  Book.  We  also 
make  the  Bill  Book  serve  as  an  auxiliary  book,  and  enter  all 
transactions,  except  those  relating  to  cash,  in  the  Blotter.  Our 
reasons  for  pursuing  this  course  are,  that  it  exercises  the  student 
in  Journalizing  transactions,  and  that  it  is  not  expedient  to 
render  his  task  too  difficult  at  the  outset.  In  some  of  the  series 
that  will  follow,  we  shall  pursue  a  different  course. 

Describe  the  second  series  of  accounts.  What  books  are  used  in  it  %  How 
is  the  Blotter  used  1  How  are  the  entries  made  in  it  1  How  is  the  Cash  Book 
used  ?  How  often  are  the  entries  in  it  Journalized  1  What  is  the  use  of  the 
Bill  Book  1  Is  it  a  book  of  original  entry?  Is  it  used  in  this  series  as  ^prinei- 
pal^  or  as  an  auxiliary  book  1  When  are  entries  in  relation  to  Bills  Receivable 
or  Bills  Payable  to  be  made  in  the  Cash  Book  ?  What  is  the  first  direction  for 
opening  this  series?  What  book  is  opened  after  the  Stock  and  Proof  Book  has 
been  Journalized  and  posted  ?  How  is  it  opened  1  What  is  the  next  book  1 
How  is  the  net  capital  of  the  merchant,  &c.,  ascertained  1  What  book  is  dis- 
.^•ased  with  in  this  series  1 


REMARKS  ON  THE  TRANSACTIONS.  8 


REMARKS  ON  THE  TRANSACTIONS. 

The  printed  examples  of  transactions  are  marked  in  the 
margin  of  the  printed  transactions,  with  the  initial  letter  or 
letters  of  the  book  in  which  the  original  entry  is  made,  and  from 
which  we  collect  the  items  far  the  Journal.  The  following  are 
the  letters  which  represent  the  several  Day  Books:  B  stands  for 
the  Blotter,  C  for  the  Cash  Book,  B  B  for  the  Bill  Book.  From 
these  books  we  make  the  Journal  entry  of  each  transaction  ac- 
cording to  the  rules  for  JournaUzing. 

There  are  two  objects  to  be  attained  in  requiring  the  transac- 
tions to  be  recorded  in  the  several  Day  Books  before  they  are 
JournaUzed.  First,  it  teaches  the  student  the  use  of  the  several 
books,  and  the  manner  of  making  original  entries  in  them;  and 
secondly,  it  informs  him  where,  in  actual  business,  he  must 
look  for  the  items  that  should  compose  his  Journal  entries,  since 
there  is  no  one  Day  Book  in  which  all  the  transactions  are  re- 
corded, and  that  in  common  language. 

To  some  of  the  following  transactions,  some  remarks  are  ap- 
pended for  the  purpose  of  assisting  the  student  in  Journalizing 
it.    When  a  transaction  is  like  any  that  precedes  it,  no  remarks 

are  made  upon  it. 

« 

For  what  purpose  are  certain  letters  inserted  in  the  margin  before  the  several 
transactions  I  Give  the  initials  of  the  several  Day  Books.  What  two  advan- 
tages arise  from  recording  the  transactions  in  the  several  Day  Books  before 
Journalizing  them  1 


Ov 


BECKER'S  BOOK-KEEPING. 


STOCK  AND  PROOF  BOOK. 


Philadelphia,  February  1st,  1847. 


C. 


B.B. 


Inventory  of  my  Resources  and  Liabilities, 
made  this  day^on  which  I  commence  the 
Grocery  Business  on  my  individual  ac- 
count. 

Property, 

Cash,  am't.  deposited  in  Philadelphia  Bank, 
House  and  Lot,  my  residence,  No.  S5  Vine 

street,  valued  at 

Notes  drawn  in  my  favour,  viz.  : 
By  Geo.  Mitchell  at  6  mos.,  due 

21—24  March, 750,00 

By  James  Walker,  at  4  mos.,  due 

20—23  Feb 500,00 


B.B. 


Samuel  Thompson  owes  me,  with  interest 
from  Nov.  25th,  1846, 


Total  Resources, 


Behts. 

John  Andrews,  balance  due  him  on  acc't. 
Edward  Young,      "  «      "  « 

Note,  drawn  and  passed  by  me — favour  of 
Wm.  Laws  at  3  mos.  due  25—28  Feb. 


Total  Liabilities, 


Recapitulation, 

Amount  of  Resources,     ^12,529,50 
"         "  Liabilities,  529,50 

Net  Capital,      jgll2,000,00 


5000 
6000 


1250 


279 


00 
00 


12529 


120 
79 

330 


00 


50 


50 


Ottt  %7 


00 
50 

00 


50 


B. 


B. 

and 
C. 


B. 


SECOND  SERIES.— FIRST  fART. 


[transactions.] 


Philadelphia,  February  3d,  1847. 


Bought  of  James  Winner,  on  account, 
200  Bbls.  S'fine  Flour,  <J  $5,50 

Inspection,  1  c. 

^T  In  this  transaction  «  Mdse."  is  received,  and  nothing 
given  for  it    Therefore  Rule  11.  applies. 


—  4 


Paid  Cash  to  Andrew  Mason  for 
12  Hhds.  N.  0.  Sugar,  18536—2340=16196  lbs. 

O  6|c. 


When  "Mdse."  is  bought  for  Cash,  the  entry  is  made 
in  the  Blotter  as  if  nothing  had  been  given  lor  it.  The  word 
"  Paid"  is  written  in  the  margin,  with  the  date  of  payment, 
and  lines  in  red  are  to  be  drawn  through  the  amount  in  the 
outer  column.  An  entry  is  then  to  be  made  in  the  Cash  Book, 
according  to  Rule  I, 


—    8 


B. 
and 
B.B. 


0. 


B. 

and 

C. 


Sold  to  John  Boyd,  (60  days  Cr,) 

100  Bbls.  S'fine  Flour,  0  $5| 

Inspection,  1  c. 

^F*  In  this  transaction  «*  Mdse."  is  given  and  nothing  re- 
ceived for  it.     Therefore  Rule  III.  applies. 

Note.  The  term  of  credit  is  to  be  placed  on  the  same  line 
with  the  word  « Inspection,"  close  to  the  margin  on  the  left 
side,  thus,  (60  days  Cr.) 


10 


Bought  of  Charles  Norton  &  Co.,  on  my  note  at  3  mos. 
30  Hhds.  S.  H.  Molasses,  3600  gals.  &  37i  c. 
25     "     N.  0.        "        3135     "        O      26 


^"  In  this  transaction  « Mdse."  is  received,  and  «  Bills 
Payable"  given  for  it.     Therefore  Rule  I.  applies. 


tr 


Paid  Cash  to  Henry  Davis  in  full  for  Bill  of  Store 
Fixtures, 

BF*  In  this  transaction  "  Store  Fixtures"  are  received,  and 
Cash  paid  for  them.  The  case  therefore  is  the  same  as  that 
of  4th  inst. 


13 


Sold  to  Clinton  Fisher,  for  Cash, 
3  Hhds.  N.  0.  Sugar,  4634— 585=4049  lbs.  ®  7i  c. 

BF*  When  «  Mdse."  is  sold  for  Cash,  the  entry  is  made  in 
the  Blotter,  as  if  nothing  had  been  received,  in  accordance 


I. 


85 


2165 


10 


175 


00 


86 


B. 


B. 

and 
C. 


B. 
and 
B.B. 


B. 


B. 

and 
C. 


BECKER'S  BOOK-KEEPING. 
[tkansactions.] 


Philadelphia,  February  13/A,  1847. 


with  Rule  III. — To  show  that  Cash  has  been  received  for  it, 
the  word  «  Paid"  is  written  in  the  margin,  with  the  date  of 
payment.  Also,  an  entry  is  made  in  the  Cash  Book  accord- 
ing to  Rule  L 


rr 


n 


Boujofht  of  Daniel  Walton,  on  account, 
75  Bags  Lag.  Coffee,  8495—210=8285  lbs.  O  11  c. 


16 


Bought  of  Hastings  &  Co.,  for  Cash, 
12  Tierces  Rice,  10500—1098=9402  lbs.      (©3  c. 
15  M.  Havana  Cigars,  (whole  boxes,)    0)  $16.00 

8  "        do.         "        rhlf      do.    )     &     

4  "        do.         «        (qr.     do.    )       & 


17.00 
18.00 


SECOND  SERIES.— FIRST  PART. 


[transactions.] 


S7 


18 


Effected  a  settlement  with  John  Boyd  for  bill  of  Flour 
sold  him  on  the  8th  inst.  amounting  to         $ 

Discount  allowed  him  for  time  shortened 
on  the  same,  ^  p'ct.  ...        $ 


Received  of  him  his  Note  at  30  days,  from  8th  inst., 
for  net  am't  due. 

1^  In  this  transaction  Rule  11.  applies.  The  discount  for 
the  time  shortened  on  bill  of  Flour  and  the  Note  received  are 
equal  to  the  amount  of  the  claim  agauist  John  Boyd. 


19 


Sold  to  Robert  Patterson,  on  account, 
5  Hhds.  S.  H.  Molasses,  625  gals. 
3      «     N.O.      do.        376 


t( 


® 


41c. 
30  c. 


730 


06 


20 


369 


Bartered  Mdse.  with  Geo.  Fox  &  Son. 

Received, 
30  Bbls.  No.  1  Mackerel,        O       $11.00  $ 
20    "       "2       do.  &  9.00  _ 

Delivered^ 
15  Bags  Lag.  Coffee,  1695—42=1653  lbs. 

O  12i  c.  $ 
3  Hhds.  S.  H.  Molasses,  a'le  gals,  (a)  40  r. 
5  M.  Havana  Cigars,  (whole  boxes,)  (S/ $20. 


Cash  for  balance. 


IW  The  caption  of  the  entry  of  this  transaction  will  be 
«  Mdse.  Dr.  to  George  Fox  &  Son."     On  the  line  following 


Philadelphia,  February  201  h,  1847. 


B. 


B.  and 

B.B. 

C. 

B. 


05 


510 


449 


00 


03 


this,  the  explanation  «  for  barter  of  Mdse.  with  them,"  is  to 
follow.  Then  we  place  the  several  items  of  Mdse.  received, 
and  the  amount  of  each,  inside  the  inner  column,  carrying  the 
total  amount  to  the  inner  column.  The  several  items  of  Mdse. 
delivered  in  exchange  are  then  entered  in  the  same  manner, 
the  difference  being  carried  to  the  outer  column.  As  the  trans- 
action is  considered  closed,  the  balance  having  been  paid  in 
Cash,  it  is  marked  "  Paid  "  in  the  margin,  and  an  entry  is  made 
in  the  Cash  Book  for  the  difference  on  the  Cr.  side ;  thus : 
Feb.  20,  By  Mdse.j  paid  Geo.  Fox  &  Son,  for  balance  in  bar- 
ter, $60.97." 


//• 


Bought  of  Louis  Cannon,  (at  30  days  Cr.) 

10  Baskets  Salad  Oil,  &  $4.00 

25  Boxes  Starch,  1556—365=1191  lbs.     &     6 J  c. 
15  Chests  Y.  H.  Tea,  1680— 330  =1350 lbs.  0  82    c. 
12  Half  Chests  Gunpowder  do.,  936—144 
=  792  lbs.  &  85    c. 


Delivered  in  Payment, 
My  not«  at  30  days  for    .        .        .        • 
Cash  for  balance    .        .        .    $ 
Discount  allowed  me  on 
the  same,  1  p'ct. 


$1000.00 


$1894.64 


C. 


B. 


CF"  In  this  transaction  « Mdse."  is  received,  and  «  Bills 
Payable"  given  for  it.  For  the  balance,  although  Cash  is 
paid,  Louis  Cannon  is  to  receive  credit  for  it  "  Discount  & 
Interest"  is  to  be  credited  for  the  1  p'ct  allowed  on  the 
amount  actually  paid.  In  the  Cash  Book,  Cash  is  to  be 
credited  thus :  "  Feb.  20.  By  Louis  Cannon,  paid  him  to 
close  his  acc't,  «J» ." 

In  order  to  find  the  amount  of  the  discount  allowed,  find 
the  balance  due  on  this  bill  which  is  here  to  be  paid  in  Cash; 
then  find  the  present  worth  of  that  balance,  and  you  will  have 
the  am't  which  is  actually  paid.  The  difference  between  the 
balance  due  and  the  present  worth  will  be  the  discount  al- 
lowed. 


21 


Paid  Cash  to  James  Winner,  in  fjill, 
for  bill  of  Flour,  bo't  3d  inst. 


// 


1894 


64 


Sold  to  Wm.  Ross,  on  account, 

2  Tierces  Rice,  1738—181  =  1557  lbs. 
2  M.  Hav'a  Cigars,  (half  boxes,)      & 


0        4  c. 
$22.00 


106 


28 


h 


88 


BECKER'S  BOOK-KEEPING. 
[transactions.] 


Philadelphia,  February  23d,  1847. 


B. 


Sold  to  John  Andrews, 
60  Bbl8.  S'fine  Flour, 


B. 
and 
B.B. 

C. 


Trenton, 

&  «6.00 

,^  „  Inspection,  1  c. 

10  Boxes  Starch,  61.3—150=463  lbs.     0  7  c 

3  Cheats  Y.  H.  Tea,  33d-66=270  lbs.  O     85  c* 


Received  in  Payment, 

His  receipt  fora  balance  due  him  on  account, 
M.  Carpenter's  note,  his  fav.  dated  Jan'y  24, 

at  60  days,  for $300.00 

Cash  for  balance,         .... 


$562.41 


C. 


B^  In  this  transaction  « Mdse."  is  given,  and  after  de- 
ducting the  am't  due  John  Andrews  on  acc't  the  balance  ia 
received  in  Bills  Receivable  and  Cash.  An  entry  for  the 
sales  of  «  Mdse."  is  to  be  made  according  to  Ruk  III.,  and 
another  for  the  note  received  according  to  Rule  II.  An  en- 
try is  also  to  be  made  in  the  Cash  Book  according  to  the 
same  Rule.  When  the  several  entries  are  posted,  it  will  be 
found  that  John  Andrews'  account  is  balanced,  and  the 
other  accounts  are  either  charged  or  discharged  for  their  re- 
spective shares. 


24 


C. 


Paid  Cash  to  Joseph  Stevenson,  in  full, 
for  bill  of  Counting-house  furniture, 


If 


The  Philada.  Bank  has  collected  and  placed  to  my  credit, 
the  amount  of  James  Walker's  note,  due  23d  inst. 


B. 


25 


Sold  to  Daniel  Walton,  on  account, 
4  Hhds.  N.  O.  Su^ar,  6165— 780=^5385  lbs.  &  7^  c. 
2      "      N.  O.  Molasses,  260  gals.         (S>        29^  c. 


// 


B. 


and 


B.B. 


Bc't  at  auction  of  Freemap  &  Bro's.  on  my  note  at 
3  mos. 
5  Pipes  Bordeaux  Brandy,  620  gals.    &    $1.75 
15  Casks  Malaga  Raisins,  &  5.00 

25  Boxe«  Muscatel      "  0  2.00 

5  Sacks  Soft-shelled  Almonds,  20&5— 72= 

2013,  &  10  c. 


562 


41 


95 


37 


494 


04 


1411    30 


SECOND  SERIES.— FIRST  PART. 


[transactions.] 


89 


Philadelphia,  February  26th,  1847. 


C. 


B. 


Received  Cash  of  Samuel  Thompson,  in  full. 

Amount  of  his  acct,  being       .... 
Interest  on  the  same  from  Nov.  25, 1846,  to  date  = 
93  days, 

B^  In  this  transaction  Cash  is  received  and  Interest,  that 
is,  the  time  is  given,  but  for  the  am't.  of  Samuel  Thompson's 
acct  nothing  is  given ;  therefore  Rules  I.  and  11.  apply. 


// 


Sold  to  Thomas  Morris  &  Co. 
30  Bbls.  No.  1  Mackerel,  &  $11.50 

20    "       "    2        "  &  9.50 

60  Bao-s  Lag.  Coffee,  6800—168=6632  lbs.  (S>  12ic. 


B.and 

B.B. 

B. 


Received  in  Payment, 
Their  Dft.  on  Caleb  Runnington  &  Co., 

New  York  at  3  days'  sight,  for 
The  balance  sold  on  account. 


$1000.00 


In  this  transaction  «  Mdse."  is  given,  and  "  Bills  Re- 
ceivable" is  received  in  part  payment,  for  the  balance  nothing 
is  received.    Therefore  RuUs  L  and  ///.  apply. 


27 


B. 

and 
C. 

Ik 


c. 


c. 


Sold  for  Cash  to  John  Perrin, 
5  Boxes  Muscatel  Raisins,  0 

2  M.  Havana  Cigars,  (qr.  boxes,) 


0 


$2.25 
23.00 


1347 


42 


28 


Paid  Cash  for  my  Note  Wm.  Laws'  favour,  due 


// 


Paid  Cash  to  the  Franklin  Fire  Ins.  Co. 

for  insuring  $6061.62  on  my  property,  No.  85  Vine  St. 
at  1  p'ct.    Policy,  $1.00. 

tW  In  this  transaction  «  Cash"  is  given  and  nothing  re- 
ceived for  it ;  therefore  the  property  is  chargeable  for  the 
amount 


57 


25 


H  2 


12 


90  BECKER'S  BOOK-KEEPIWO. 

JOURNALIZmo   SECOND   SERIES. 

FIRST  PART. 

As  it  is  desirable  thai  each  part  of  the  work  should  be  well 
understood  before  proceeding  to  another  part,  the  original  entries 
of  the  transactions  in  this  set  should  be  made  before  the  student 
begins  to  Journalize.  In  proceeding  to  JournaHze,  the  entries 
in  the  Blotter  should  first  be  disposed  of,  and  only  those  entries 
not  marked  «  Paid"  are  to  be  Journalized.  Those  in  the  Cash 
Book  should  then  be  taken  up.  The  entries  in  the  Bill  Book 
in  this  series  are  not  transferred  to  the  Journal,  as  this  book  is 
auxiliary  to  the  Blotter  and  the  Cash  Book. 

In  composing  the  Journal,  after  the  Inventory  of  Stock  ac- 
count has  been  disposed  of  according  to  directions,  all  entries 
are  to  be  made  in  the  same  form  as  in  the  Blotter,  omitting 
the  explanations.  Some  merchants,  however,  require  the 
Journal  entries  to  be  made  with  explanations,  which  method 
will  not  be  found  advantageous,  except  in  the  Shipping  and 
Commission  business. 

The  entries  in  the  Blotter,  in  actual  business,  are  Journalized 
daily,  weekly,  or  monthly,  according  to  the  necessities  of  the 
busmess.  When  this  has  been  performed,  the  Cash  Book  must 
be  balanced  previously  to  its  being  written  up  or  Journalized. 

The  amounts  entered  on  the  Dr.  side  of  this  book  will  be  em- 
oraced  in  one  Journal  entry,  the  caption  of  which  will  be  the 
following: 

"  Cash  Br.  To  Sundries 

for  this  month's  receipts" 

After  this  follow  the  several  creditors  with  their  respectrve 
amounts.  If  one  account  has  received  several  credits  during  the 
month,  the  amounts  of  each  are  added  together  and  Journalized 
m  one  amount.     Thus  "Merchandise"  is  creditor  Feb.  12th  for 

^ and  Feb.  27th  for  $ .    Therefore  «  Mdse.,  in  the 

Journal  entry,  is  creditor  in  one  am't.  for  $ . 

When  an  entry  has  been  Journalized,  it  should  immediately, 
on  the  double  red  line  of  the  money  columns,  be  checked  in  the' 
Cash  Book,  thus  (  i^  ).  When  all  the  Cr.  items  for  money 
received  have  been  Journalized,  the  correctness  of  the  work 


JOURNALIZING  SECOND  SERIES^FIRST  PART. 


91 


1 


can  be  proved  by  subtracting  from  the  total,  the  amount  alre;idy 
posted,  which  is  the  balance  on  hand  on  opening  the  account 
for  if  no  error  has  been  committed  in  Journalizing,  the  differ 
ence  will  be  equal  to  the  total  footing  of  the  Journal  entry.   The 
footing  in  the  Cash  Book  is  to  be  made  first,  in  pencil,  and, 
when  its  correctness  has  been  ascertained,  it  may  be  inserted  in 

ink. 

Having  proved  that  the  Journal  entry  for  the  amount  of  money 
received  is  correct,  the  entries  on  the  Cr.  side  of  Cash  must  be 
Journalized.     The  Journal  caption  of  the  entry  will  be — 

« Sundries  Dr.  To  Cash, 

for  this  month's  disbursements." 

Then  follow  the  several  debtors  with  their  respective  amounts. 
Those  accounts  which  have  more  than  one  charge  or  debit,  are 
added  together  and  entered  in  one  amount,  as  has  been  de- 
scribed. The  total  footing  of  this  entry  must,  of  course,  equal 
the  total  amount  paid  out  as  per  Cash  Book. 

What  book  in  this  series  should  be  Journalized  firstl  What  entnes  snould 
be  omitted  in  Journalizing  it  %  What  book  should  next  be  disposed  of  1  Why 
is  the  Bill  Book  not  to  be  Journalized  1  What  is  the  difference  between  the 
Blotter  and  Journal  entries  1  In  what  business  is  it  advantageous  to  retain 
the  explanation  in  the  Journal  1  Before  the  Cash  Book  is  Journalized,  what 
must  be  done  %  What  is  the  caption  of  the  Journal  entry  for  the  amounts  re- 
ceived on  the  Dr.  side  of  the  Cash  Book  1  What  are  the  Cr.  items  in  this 
entry  ?  If  one  account  has  received  several  credits  during  the  month,  how  are 
they  Journalized  !  How  do  we  indicate  in  the  Cash  Book  that  an  entry  in  the 
game  has  been  Journalized  ?  When  all  the  Cr.  items  for  money  received  have 
been  Journalized,  how  can  the  correctness  of  the  work  be  tested  %  How  are 
we  to  guard  against  the  insertion  of  a  wrong  footing  in  the  Cash  Book  1  What 
18  the  caption  of  the  Journal  entry  for  amounts  entered  on  the  Cr.  side  of  the 
Ca«h  Book  ?     Give  the  remarks  on  this  subject. 


4 


92 


BECKER'S  BOOK-KEEPING. 


POSTING  AND  CLOSING  SECOND  SERIES. 

FIRST  PART. 

Having  finished  Journalizing,  both  from  the  Blotter  and  Cash 
Book,  the  entries  are  to  be  posted  in  regular  order,  observing 
that,  for  every  entry  made  in  the  Ledger  on  the  Dr.  side  of  one 
account,  there  must  be  a  corresponding  entry  made  on  the  Cr. 
side  of  another  account. 

When  the  posting  is  completed,  the  student  will  commence 
closing  the  set,  the  process  of  which  will  be  the  same  as  in  the 
Introductory  Set.  Referring  to  the  latter  for  directions,  we  will 
merely  mention  the  order  in  which  this  part  of  the  work  is  to 
be  done.     It  is  the  following  : 

1.  Take  off  a  trial  balance  from  the  Ledger,  to  prove  the  cor- 
rectness of  the  postings. 

2.  Take  an  Inventory  of  the  property  on  hand,  unsold,  Feb 
28th,  1847. 

3.  Ascertain  the  gains  and  losses  in  the  business  during  the 
month  and  make  entries  for  the  same,  in  the  Journal,  which 
entries  are  to  be  derived  from  the  following  statement : 

On  examination,  it  will  appear  that  the  following  accounts 
nave  produced  gains,  viz. : 


SECOND  PART  Of  SECOND  SERIEa 


93 


Merchandise. 

Total  sales,  as  per'Cr.  side,  being 
Bal.  being  the  estimated  value  of  Mdae. 
on  hand,  unsold,  as  per  Inventory, 

Total  cost,  as  per  Dr.  side,  being 

Discount  &  Interest. 

Amount  of  Cr.  side  being 
Vmount  of  Dr.    «       « 


$000.00 
000.00 


$000.00 
000.00 


f    00.00 
0.00 


$000.00 


00.00 


$000.00 


Real  Estate  shoves  a  loss,  as  foUovrs: 
Amount  of  Dr.  side  being 

Estimated  value  of  House  and  Lot  per  Inventory, 
being 


$0000.00 
0000.00 


$   00.00 


Having  Journalized  and  posted  the  entries  for  the  gains  and 
losses  on  the  several  accounts,  close  Profit  &  Loss  account 
into  Stock. 

4.  Take  off  a  Balance  Sheet,  according  to  the  form  given  in 
the  «  Balance  Sheet,  or  Transfer  Balance  Sheet,"  which,  in  many 
houses,  is  all  that  is  required  to  be  done.  But  when  a  full  and 
complete  abstract  of  all  the  Ledger  accounts  is  desired,  the 
Balance  Sheet  is  to  be  made  according  to  the  form  given  in  the 
Introductory  Set,  which  form  has  been  appropriately  styled  the 
«  Grand  Balance  Sheet."* 

5.  Close  the  accounts  in  Ledger  A.  which  have  balances,  and 
open  the  same  in  Ledger  B.  according  to  the  directions  foi 
«  Transferring  Accounts  from  the  old  to  the  new  Ledger." 

When  all  the  books  have  been  Journalized,  what  is  the  next  thing  to  be  done 
What  is  to  be  borne  in  mind  in  posting"?  In  proceeding  to  close  the  books, 
what  is  the  first  direction  to  be  observed  ?  The  second  1  The  third  ?  Be* 
scribe  the  form  of  the  statement  from  which  the  gains  or  losses  on  the  various 
accounts  are  ascertained.  When  the  entries  for  gains  and  losses  have  been 
Journalized  and  posted,  what  account  is  to  be  closed  1  What  is  the  fourth 
direction?  When  is  a  "Grand  Balance  Sheet"  to  be  taken?  What  is  the 
fifth  direction? 


«  •  •  •  > 


SECOND  PART  OF  SECOND  SERIES. 

It  is  not  necessary  that  all  the  books  should  be  renewed  when 
only  the  Ledger  is  filled.  New  books  need  be  procured  to  sup- 
ply the  place  of  those  only  that  are  filled.  The  books  of  the  old 
set  that  may  not  have  been  written  through  will  still  be  of  use 
to  accompany  the  new  books.  If  a  new  Cash  Book  is  to  be 
used,  the  balance  in  the  old  one  is  to  be  brought  forward  in  the 

new  book  thus:  "To  Balance  as  per  Cash  Book  No.  1,  $ ." 

In  the  old  Cash  Book  the  account  is  closed  "  By  Balance  carried 

to  Cash  Book  No.  2,  $ ."     If  a  new  Bill  Book  be  needed, 

all  the  Bills  Payable  and  Bills  Receivable  still  open  are  copied 
into  the  new  book ;  and  in  the  old  book,  in  the  column  of  re- 
marks, they  are  marked,  "transferred  to  new  book."     When, 

•  It  vnll  be  profitable  to  the  student  to  make  out  a  Grand  Balance  Sheet  of  this 
series  in  addition  to  the  Transfer  Balance  Sheet,  and  to  close  it  according  to  the  form 
of  that  g^ven  in  the  previous  series. 


94 


BECKER»S  BOOK-KEEPING. 


SECOND  SERIES SECOND  PART. 


95 


.(: 


however,  any  of  the  other  books,  such  as  the  Day  Book,  oi 
Blotter,  Journal,  Sales  Book,  or  Invoice  Book,  are  filled,  the  new 
book  is  commenced  with  the  first  transaction  that  may  occur  in 
the  department  in  which  it  is  to  be  used. 

The  Ledger  is  the  only  new  book  in  the  second  part  of  this 
series.  All  the  other  books  are  to  be  continued  in  the  same 
blank  books,  the  latter  being  sufficiently  large  for  that  purpose. 

Merchants  who  do  not  keep  a  book  into  which  the  Balance 
Sheets  are  copied  from  time  to  time,  have  them  copied  into  the 
Journal,  in  the  following  form: 


STATEMENT  OP  MY  EFFECTS  AND  DEBTS,  ACTIVE  AND  PASSIVE/ 

AS  PER  BALANCE   SHEET,  LEDGER  A.,  TAKEN  FEB.  28tH,   1847. 

•Active. 

Cash,  balance  on  hand  per  Cash  Book,.     . 

Real  Estate,  house  and  lot  No.  85  Vine  St. 

Bills  Receivable,  notes  &c.  in  my  favour 
per  Bill  Book, 

1753 
6000 

2623 
5942 
270 
369 
106 
347 

14 
00 

12 
75 
37 
05 
28 
42 

« 

Merchandise,  on  hand  per  Inventory,   • 

Store  Fixtures,  valued  ««       do 
Robert  Patterson,  owes  me, .    .    .    . 
Wm.  Ross,               «      «    .    .    .    , 
Thomas  Morris  &  Co.,  owes  me,.    . 

Passive, 

Bills  Payable,  notes  afloat,  per  Bffl  Book, 

Edward  Young,  due  him,    ,    .    .    , 
Daniel  Walton,     «    «       .... 

4576 

79 

417 

40 
50 
31 

Recapitulation, 

Amount  of  my  active  Stock,     $17412.13 
Amount  of  my  passive     <«              5073.21 

13 

12338 

92 
13 

My  net  Capital, 

$17412 

17412 

The  above  amounts,  on  examination  of  the  accounts,  will  be 
found  to  correspond  with  the  balance  brought  into  the  new 
Ledger. 

The  transactions  following  are  to  be  entered  as  in  the  first 
part 


As  in  the  preceding  part,  we  subjoin  notes  to  those  transactions 
needing  elucidation. 

Is  it  necessary  that  all  the  hooks  should  he  renewed  when  all  are  not  filled  ? 
When  a  new  Cash  Book  is  to  he  used,  how  is  it  to  be  opened  %  How  is  the 
account  in  the  old  Cash  Book  closed  1  If  a  new  Bill  Book  be  used,  how  is  it 
opened  1  How  is  the  old  one  closed  1  When  a  new  Day  Book,  Journal,  &c., 
are  used,  what  will  be  the  first  entry  in  them?  What  is  the  only  new  book 
in  this  series?  If  a  copy  of  the  Balance  Sheet  of  the  old  Ledger  be  not  re- 
corded, what  is  the  form  of  the  statement  to  be  entered  in  the  Journal  ?  How 
must  the  correctness  of  the  amounts  contained  therein  be  proved  1 

[transactions.] 


Philadelphia^  March  2flf,  1847. 

B. 

Sold  to  Paul  Hammond  on  acc't, 
5  Baskets  Salad  Oil,                                0>      $4.7.5 
1  Chest  Y.  H.  Tea,  112—22—90             &       95  c. 
1  Hlf.  do.  Gunpowder  do.  78—12—66     &       90  c. 

168 

65 

ff 

C. 

Received  Cash  of  Wm.  Ross,  on  acc't. 

50 

00 

B. 

B. 

B.  and 

B.  B. 

B. 

B. 

Sold  to  James  Winner, 

5  Pipes  Bordeaux  Brandy,  620  ^Is.  0  $2,   $ 
3  Sacks  Soft  Shelled  Almonds, 

1249—43—1206  lbs.  0  12i  c. 

a 

1395 

38 

Received  in  Payment, 

My  note,  Louis  Cannon's  favour,  due  22 — ^25 
Mar.                                                                 $ 

Hiram  Good  fellow's  note,  his  favour,  at  90 

days,  due  15—18  March,                                  300.00 

The  balance  sold  on  acc't. 

$1395.38 

Discount  off,  on  my  note,  for  23  days,                 $ 
do.        "     H.  Goodfellow's  note,  for  16  days, 

9 

C. 

The  Farmers  &  Mechanics'  Bank  has  discounted  Geo. 
Mitchell's  note,  due  21—24  March,  am't       $750.00 

Discount  on  the  same,  for  22  days,  is  .        • 
Cash  passed  to  my  credit,    .        .        •        . 

96 


BECKER'S  BOOK-KEEPINa 
[tkansactions.] 


Philadelphia,  March  3d,  1847. 


^  «  Bills  Receivable"  and  «  Bills  Payable"  must  always 
be  debited  or  credited,  as  the  case  may  require,  for  the  full 
amount  of  the  face  of  the  note.  Therefore,  in  this  transac- 
tion, Cash  must  be  debited  for  the  amount  of  the  note,  and, 
on  the  opposite  side,  it  must  be  credited  for  the  discount  al- 
lowed on  it.  The  difference  is  equal  to  the  amount  of  Cash 
passed  to  my  credit  at  the  Bank- 


C. 


Lent  Cash  to  Willis  &  Sanderson,  to  be  refunded  the 


15th  inst. 


B. 

and 

C. 


c* 


Sold  to  Peter  Hollis,  for  Cash, 

15  Casks  MalagTi  Raisins,  0 

20  Boxes  Muscatel   do.  & 


f5.50 
2.25 


// 


B.  and 
C. 


The  Philadelphia  Bank  has  collected  and  placed  to  my 
credit  the  am't  of  Thomas  Morris  &  Co's.  Dft.  on 
Caleb  Runnington  &  Co.,  N.  Y. 


8 


Paid  Cash  to  Alexander  Leroy,  for 
20  Bags  Java  Coffee,  3000— 75=-2925 


&      13  c. 


10 


c. 


c. 


Paid  Cash  to  Edward  Young,  in  full  for  his  acc't 

12  — 


Received  Cash  of  Wm.  Ross  on  acc't,  and  in  full  for 
balance  of  Biil  Mdse.  21st  ult    . 


B. 


n 


Sold  to  Wm.  Ross,  on  acc't, 
3  Tierces  Rice,  2534—264=2270  lbs. 
2  Boxes  Starch,  138—30=108  lbs. 

1  Chest  Y.  H.  Tea,  11:3—22=91  lbs. 

2  Hlf.  do  Gunpowder  do.  189^24=ia5 
2  M.  Hav'a  Cigars  (whole  boxes)       0 
1  "      "  «       (hlf.        "      )        O 


O 

& 
& 
0 


31  c. 
7ic. 
96  c. 
91  c. 


$23.50 
24.50 


800    00 


H 


SECOND  SERIFS.— SECOND  PART. 


[transactions.] 


97 


127    50 


Philadelphia,  March  121  h,  1847. 


B. 


402 


24 


B.  and 

B.B. 

B. 

C. 
B 


&   42  c. 

(S>   28  c. 


Sold  to  Austin  Atwood  &  Co., 
10  Hhds.  S.  H.  Molasses,  1190  gals. 
10    »*       N.  O.         "        1256    " 
4    "       N.O.  Sugar, 

6204— 790=5414  lbs.    &   7i  c. 
10  Bags  Java  Coffee, 

1500—37=1463  lbs.       O  14^  c. 


Received  in  Payment f 
Their  note  at  60  days,  $1000.00 

Daniel  Walton's  Dft  on  me,  their  favour,  in 

full  for  balance  of  his  acc't , 
Cash  for  balance    ...... 


1473 


32 


$148;3.82 


Discount  on  their  note  for  63  days.  . 


10 


50 


C. 


C. 


t^  In  this  transaction  we  will  depart  from  our  usual  course 
by  dividing  it  into  two  parts,  and  making  an  entry  for  the 
sale,  and  one  for  the  payment.  The  entry  for  the  sale  will  be 
made  according  to  Rule  III.,  and  that  for  the  payment  ac- 
c6rding  to  Rules  /.,  //.,  and  ///.  An  entry  will  be  made  on 
the  Dr.  side  of  the  Cash  Book,  for  the  amount  of  Cash  re- 
ceived. When  these  entries  are  posted,  Austin  Atwood  & 
Co's  account  will  be  found  closed. 


1483]  82 


14 


Received  through  the  Philadelphia  Bank,  the  am't  of 
John  Boyd's  note,  due  13th  inst., 

15  . 


Received  Cash  of  Willis  &  Sanderson,  for  loan  of  4th 
inst. 


ff 


B. 


*  5.62i 

5i 


&       41i  c. 


Exchanged  Mdse.  with  Zachariah  Osbourn. 

Received, 
50  Bbls.  S'fine  Flour,  0 

25    "       Scraped  Flour,  & 

Delivered. 
1  Hhd.  S.  H.  Molasses,  132  gals. 

1  "       N.  0.  Sugar, 

1533—185=1348  lbs. 

2  Tierces  Rice,  172.^—179=1546  lbs. 

2  Boxes  Starch,  137—30=107  lbs. 

3  Baskets  Salad  Oil, 
2  M.  Hav'a  Cigars,  (whole  boxes) 
2M.      "  »»        (hlf.         do,) 

I  owe  the  balance  on  account,   .        ,        .    ~~,        \ 

IdP*  This  transaction  is  entered  in  the  Blotter  in  the  same 
manner  as  the  barter  with  Geo.  Fox  &  Son,  of  20th  ult 

I  13 


800 


00 


& 

0 


71  c. 
3ic. 

7ic. 


0  $4.87i 
0  23.00 
0  24.00 


409 


38 


322    68 

86'  70 


'  ( 


■ 


98 


BECKER'S  BOOK-KEEPING. 


[transactions.] 


Philadelphia,  March  19 th,  1847. 


C. 


B.  and 
C. 


B. 

and 
B.B. 


Received  through  the  Farmers  &  Mechanics'  Bank, 
the  am't  of  Hiram  Goodfellow's  note,  due  18th  inst. 


20 


Sold  for  Cash  to  Adam  Whiteman, 
10  Bbls.  S'fine  Flour, 
5    *'      Scrape4 


it 


0 


4 


23 


Exchanged  notes  with  Frank  Stockton,  for  mutual  ac- 
commodation, each  note  being  drawn  at  3  mos.  and 
amounting  to      .••..,         . 


B. 


B. 


B. 


B.  and 
B.B. 


25 


C. 


Sold  to  John  Homer, 
my  house  and  Jot,  No.  85  Vine  St.,  for 

Eeceived  in  Payment. 

His  Bond  to  me,  securing  payment  on  above 

property,  and  payable  in  5  years.     Interest 

payable  quarterly,  at  5  p'ct.  per  annum       $2000.00 
My  note,  fa  v.  Chas.  Norton  &  Co.,  due  10 — 

13  May,  2165.10 

His  three  notes,  endorsed  by  Amos  Valentine, 

each  drawn  for  $600.    Interest  added  at  6 

p'ct.  per  annum,  viz  : 
One  dated  25th  Mar.  at  6  mos.,  due  28th 

Sept.  1847,  $ 

One  dated  2.5th  Mar.  at  12  mos.,  due  28th 

Mar.  1848, 
One  dated  2.5th  Mar.  at  18  mos.,  due  28th 

Sept.  1848,  1908.90 

Cash  for  balance,  25.52..58 


{?  8626.58 


Discount  oflf  on  my  note  for  49  days, 
Interest  added  on  his  three  notes  for  $1800, 
average  time  12  mos.  3  days. 


The  sale  of  the  house  should  be  entered  according  to 
Rule  III.  In  the  entry  for  the  payment,  Rults  I.  and  //. 
apply.  John  Homer  is  to  receive  credit  for  the  net  am't  of 
bond  and  mortgage,  and  notes  received,  less  the  discount  and 
interest,  on  the  latter.  In  the  Cash  Book,  an  entry  is  to  be 
made  for  the  Cash  received.  When  tiiese  entries  are  all 
posted,  John  Homer's  acc't  will  be  found  to  close.  In  this 
transaction,  Bond  &  Mortgage  acc't  is  to  be  opened. 


89 


600 


8500 


38 


00 


00 


8626     58 


C. 


B. 


B. 


B. 


and 


B.B. 


C. 


B. 


C. 


SECOND  SERIES.— -SECOND  PART 


[transactions.] 


99 


Philadelphia,  March  21th,  1847. 


Paid  Cash  to  Zachariah  Osbourn,  in  full  for  his  acc't. 

28  


Sold  to  Frank  Howard,  at  5  p'ct.  premium  on  cost,  the 
balance  of  my  Stock  of  goods  remaining  on  hand,  un- 
sold, amounting  as  per  Inventory  to  $ 
Premium  at  5  p'ct.  on  do. 

Store  fixtuies  and  counting-house  furniture,  at 
5  p'ct.  discount,  valued  as  per  H.  Davis'  bill, 
do  per  Jos.  Stevenson's   " 

Total  cost  $ 

Disc't  off  5  p'ct.  on  do. 

Received  in  Payment. 

His  note  at  30  days,  $1000.00 

James  Beck  &  Co's.  Dft.  at  60  days  sight,  on 
Ben  Waters,  Boston,  which  is  accepted, 
due  15—18  April,  1000.00 

Julius  Wright's  note,  his  favour,  at  4  mos., 
due  21—24  May,  500.00 

Cash  for  balance. 


$3675.15 


DiBCoant  on  his  note  for  33  days  $ 

do        "  Ben  Waters'  acceptance  for  21  days, 
do       Julius  Wright's  note  for  57  days. 


t^  Before  entering  this  transaction,  the  student  should 
take  an  inventory  of  the  goods,  &c.,  on  hand  unsold.  The 
entry  for  the  transaction  is  the  same  as  that  on  the  25th  inst 


29 


Received  through  the  Farmers  &  Mechanics'  Bank,  the 
am't  of  M.  Carpenter's  note,  due  28th  inst.  . 


31 


C. 


Paid  Cash  this  month  as  per  Expense  Book, 

for  house  and  pocket  expenses,   .         , 

"  rent  of  store  2  mos. 

**  store  expenses,  advertising,  &c.,    . 

"  Clerk  hire, 


3675 


15 


150 

100 

75 

125 


00 
00 
00 
00 


450    00 


I 


I 


i 


i| 


I 


>. 


100 


BECKER'S  BOOK-KEEPING. 


Entries  of  transactions  of  this  kind  form  excep-ions  to  Rule  /., 
according  to  which  they  would  naturally  be  Journalized.  The 
equivalent  received  in  such  cases  for  money  paid,  must  be  con- 
sidered, in  one  sense,  a  loss,  since  it  is  received  for  the  purpose 
of  consumption ;  hence  it  is  represented  by  the  title  of  "  Ex- 
pense," which  account  is  debited  for  the  amount  paid  out.  The 
student  would  do  well  in  this  connexion  to  refer  to  Expense  ac- 
count, under  the  article  entitled  "Explanation  of  Accounts  in  the 
Ledger,  with  the  rules  for  opening  and  closing  them." 

CLOSING  OF  SECOND  PART. 

The  Journal  entries  of  the  Blotter  and  Cash  Book  are  to  be 
made  in  the  same  manner  as  in  the  first  part  of  this  series.  The 
Trial  Balance  being  taken  off,  the  student  should  proceed  to 
ascertain  the  gains  and  losses  on  the  various  accounts,  as  follows: 

Having  disposed  of  all  my  property,  1  find  that  the  following 
acc'ts  have  produced  gains: 

Real  Estate,  am*t  of  Cr.  side  being,  $0000.00 

«    «i  Dr.    «       «  0000.00         $0000.00 


Discount  &  Interest,  am't  of  Cr.  side  being, 


«  Dr.  *♦ 


Merchandise,  am't  of  Cr.  side  being, 


"Dr.  « 


000.00 
0.00 

0000.00 
0000.00 


000.00 


0000.00 
$0000.00 


The  following  acc'ts  show  balances  against  them,  being  losses, 
and  are  to  be  balanced  into  "  Profit  &  Loss." 


Store  Fixtures,  am't  of  Dr.  side  being. 

u      ti  Cr.    «•     « 


$000.00 
000.00  $  00.00 


iiXpense,  am't  of  Dr.  side  being  the  total  of  my  expenses,  000.00 

$000.00 


When  the  above  has  been  Journalized  and  posted,  an  entry 
for  the  following  statement  should  be  made : 

"Profit  &  Loss"  presents  a  balance  in  favour  of  Stock,  being 
the  total  net  gain  of  my  business  this  month,  i^OOO.OO 


h 


THIRD  SERfES. 


101 


The  drawing  of  the  Grand  Balance  Sheet,  and  the  closing  of 
the  Ledger  accounts,  according  to  the  form  of  the  "periodical 
closing  of  accounts,"  will  be  the  finishing  exercises  of  the  series. 

How  are  the  Journal  entries  for  the  Blotter  and  Cash  Book  to  be  made? 
Describe  tlie  form  of  the  statement  of  gains  and  losses.  What  entry  is  to  be 
made  after  the  same  has  been  Journalized  and  posted  ?  What  are  the  finishing 
exercises  of  the  series  ?    . 


<  ••• » 


THIRD  SERIES. 

This  series,  like  the  previous  one,  is  divided  into  two  parts 
In  it  the  Student  is  represented  as  having  entered  into  partner- 
ship with  Clarence  Aubrey,  for  the  purpose  of  conducting  the 
wholesale  Jobbing  and  the  Hardware  business,  the  two  partners 
sharing  alike  in  the  gains  and  losses. 

In  actual  business,  the  books  for  both  of  these  branches  of 
business  are  ruled  alike ;  hence,  the  transactions  to  be  recorded 
in  them,  cannot  differ  much  in  their  forms  of  entry. 

The  books  used  in  this  series  are  the  Sales  Book,  Cash  Book, 
Bill  Book.  Invoice  Book,  Day  Book,  and  Ledger. 

The  forms  observed  in  these  several  books  are  exemplified 
and  described  in  the  blank  books  accompanying  this  series. 

It  will  be  perceived  that  the  Journal  is  dispensed  with  in  this 
series.  Transactions  are  classified,  and  each  one  of  them  is  re- 
corded in  the  book  appropriated  for  the  department  to  which  it 
belongs.  From  each  Day  Book,  therefore,  entries  may  be 
posted  daily,  and  thus  the  necessity  of  deferring  till  the  last  day 
of  each  month  the  task  of  "bringing  up"  the  books  is  avoided, 
and  the  Book-keeper  is  relieved  of  a  vast  amount  of  unneces- 
sary labour. 

The  Invoice  Book  is  the  only  book  which  affords  an  excep- 
tion to  the  method  of  practice  set  forth  in  the  preceding  remark. 
This  book  contains  merely  a  copy  of  the  bills  received  for  goods 
purchased.  If  any  errors  be  detected  in  the  extension  of  the 
items  of  these  bills,  or  if  an  abatement  for  defects  in  the  goods 
is  to  be  obtained,  the  former  should  be  rectified,  and  the  latter 
made  on  the  face  of  the  original  bill  by  the  party  who  sold  the 
goods,  and  before  the  bill  has  been  entered  in  the  Invoice  Book. 
I2 


Ill 


102 


BECKER'S  BOOK-KEEPHNG. 


Hence,  it  is  necessary  that  the  Book-keeper  should  wait  till  the 
last  day  of  the  month  to  "bring  up"  this  book. 

We  shall  continue  to  mark  before  the  printed  examples  com- 
posing this  series,  the  initial  letters  of  the  books  in  which  the 
transactions  are,  wholly  or  in  part,  to  be  recorded.  The  follow- 
ing is  the  classification  and  distribution  of  the  transactions  : 

Sales  of  Mdse.  effected  by  the  concern,  are  entered  in  the  Sales 

Book,  [marked]  S.  B. 
Purchases  of  Mdse.  made  by  the  concern  are  entered  in  the 

Invoice  Book,  [marked]  I.  B. 
Bills  Receivable,  received  ?    ,     ^ 
Bills  Payable,  issued         5   ^^  ^^  "^"""'"'  "'^  ^"^^^^^  ^"  ^^^ 

Bill  Book,  [marked]  B.  B. 
Money,  received  and  paid  by  the  concern,  is  entered  in  the  Cash 

Book,  [marked]  C.  B. 

■  All  other  transactions  which  cannot  be  brought  under  any  of 
the  above  heads  are  to  be  entered  in  the  Day  Book,  [marked 
D.  B.]  which  is  kept  in  Journal  form  with  explanations. 

The  books  of  this  series  are  opened  by  making  entries  from 
the  "  Stock  and  Proof  Book"  for  each  partner's  investment.  All 
these  entries  should  be  posted  and  proved  correct  by  taking  off  a 
Trial  Balance  before  making  entries  for  the  transactions  given. 

When  the  books  have  been  thus  opened,  the  student  should 
not  neglect  to  make  the  proper  entries  in  his  last  set  for  the 
Cash  and  Notes  invested  in  this  new  concern. 

Describe  the  third  series  of  examples.  What  books  are  used  in  this  series  1 
What  book  is  dispensed  with  in  this  series  1  How  are  the  transactions  classi- 
fied \  What  advantage  arises  from  posting  directly  from  the  books  of  original 
entry  1  What  book  is  an  exception  to  these  remarks?  Why  is  it  necessary 
to  wait  till  the  last  of  the  month  to  "bring  up"  this  book  1  Give  the  initial 
letters  for  the  several  Day  Books  used  in  this  series.  How  are  the  books  of 
this  series  opened  1  What  should  the  student  remember  to  do,  when  the  booki 
of  this  series  have  been  opened  1 


1 1 

t 


STOCK  AND  PKOOF  BOOK. 


103 


STOCK  AND  PROOF  BOOK. 


Philadelphia,  Jipril  1st,  1847. 

• 

[Student]  and  Clarence  Aubrey,  hear- 

ing the  title  of  [Student's  Name]  &  Au- 

brey, have  entered  into  partnership  as  per 

articles  of  agreement,  this  first  day  of  April, 

1847,   for   the   purpose   of  conducting   the 

Wholesale  Dry  Goods  and  the  Hardware 

business,  each  to  share  alike  in  gains  and 

losses.     They  have  made  investments  to  the 

amount  following  their  names  respectively. 

• 

[Student.] 

C.B. 

Cash,  deposited  in  Farmers  &  Mechanics*  Bank,    . 

7000 

00 

B.B. 

Acceptance.,  by  Ben.  Waters,  Boston,  drawn  by  James 
Beck  &  Co.  in  fav.  Frank  Howard,  dated  Feb.  14th, 

at  60  days,  for 

1000 

00 

M     U 

Notes,  drawn  in  his  favour,  viz. : 

by  Frank  Howard,  at  30  days  from  Mar.  28th, 

1000 

00 

by  Austin  Atwood  &  Co.  at  60  days  from  Mar.  12th, 

Total, 
Clarence  Aubrey. 

1000 

00 

10000 

00 

C.B. 

Cash,  dep.  in  Farmers  &  Mechanics'  Bank,    .         • 

5000 

00 

D.B. 

Merchandise,  as  per  Inventory  Stock  Book,    . 

4500 

00 

B.B. 

Notes,  drawn  in  his  favour,  viz. : 

by  Wm.  Rodgers,  at  3  mos.  from  Jan'y  22d,  for 

400 

00 

by  Thomas  Morris  &  Co.,at90daysfrom  Mar.  3d,  for 

600 

00 

D.B. 

Store  Fixtures,  as  per  Schedule,  valued  at      . 

Total, 
Debts, 

495 

00 

10995 

00 

Assumed  by  the  concern  on  account  of  C.  Aubrey,  viz. : 

B.B. 

His  note  in  favour  Samuel  Williams,  dated  Jan'y 

16th,  at  90  days,  for 

350 

00 

((     u 

His  acceptance  of  N.  Cunningham's  Dft.  fav.  Robt 

King,  at  30  days  from  March  19th, 

500 

00 

D.B 

James  Miller,  due  him  on  acc't. 

Total, 

125 

00 

975 

00 

r,\ 


i\ 


ml 


104 


BECKER'S  BOOK-KEEPING. 

m 

[transactions.] 


Philadelphia^  Jlpril  4ihy  1847. 


LB. 


LB. 


Bought  of  Harris  and  Otterson,  (8  mos.  Cr.) 
a  quantity  of  Mdse.  as  per  their  bill,  amounting  to 


tr 


Bought  of  Julian  &  Paul,  (8  mos.  Cr.) 
a  quantity  of  Mdse.  as  per  their  bill,  amt'g  to 


aB. 


Sold  to  Abraham  Brooks,  North  Second  st.  (6  mos.) 
4^  1672.     1  Case  Fine  Check  Prints,  36  ps. 

10a5yds.  01  12  c. 

1320.     1  Case  4-4  Rich  Flower  Pattern, 

356.     1  Case    Unbl'd    Muslins,  20  ps. 

665  yds.  ^  9  c. 


8.B. 


n 


Sold  to  Richard  Paine  &  Son,  Wilmington,  Del.  (6  mos.) 
4^  1362.    2  Cases  Fine  Long  Cloth  Muslins, 

36  ps.  1236  yds.  (a)  20    c. 

640.     1  Case  Sup.  Canton  Flannel,  20  ps. 

540i  yds.  0  I2i  c. 


LB. 


Received  per  the  Merchants'  Line,  from  Deprez,  Bruno 
&  Varnum,  New  York,  pursuant  to  order,  and  for 
our  acc't,  viz. : 
4^  1678.    2  Cases  Large  Plaid  French  Ging- 
hams,    20   ps.     .520  Metres,* 

y<i8.  {a)  28  c. 

1976.  1  Case  "Lupin's"  Fine  French 
Merino,  30  ps.  840  Aunes,* 
yds.  &  $1.50 


The  above  is  a  copy  of  an  invoice  of  goods  received 
from  N.  Y.  for  our  acc't,  and  it  is  to  be  entered  as  if  the  goods 
had  been  purchased  in  this  market  For  directious,  see  In- 
voice Book. 

•  All  sales  of  dry  goods  must  be  calculated  in  yards ;  all 
other  measures  given  must,  therefore,  be  converted  to  yards 
before  the  calculation  can  be  made. 

A  metre     ■■     ly^  yards. 

An  aune     =     IJ    yards. 

A  brace     »      f    yard. 


735 


1200    00 


50 


327 


30 


314 


76 


1732 


73 


S.  B. 


B.B. 


LB. 


S.  B. 


LB. 


S.  B. 


S.B. 
and 
C.B. 


THIRD  SERIES.— FIRST  PART. 


[transactions.] 


Philadelphia,  ^pril  9lh,  1847. 


Sold  to  Stephen  Pancoast,  Pittsburg,  Pa.  (6  mos.) 
it  18647.     1  ps.  Matteoni  Lustring,  130  Braces, 

yds.  ^.        &  -^1.00 

1363.    2  ps.  Bl'k  Lustring,  SJ  }  90  Aunes, 

yds.  &  1.50 

184.    2  ps.  Extra  Chameleon  Silks,  ^l 

56  Metres, yds.        &     ^       2.00 


// 


Accepted  Deprez,  Bruno  &  Varnum's  D'ft.  dated  New 
York,  April  8th,  at  10  days  sight,  in  favour  of  Eu- 
gene Chase, . 

10  


Bo't  of  Booth  &  Brown,  Auctioneers,  (6  mos.) 
a  quantity  of  Mdse.  as  per  their  bill,  amt'g  to 


12 


Sold  to  Valentine  Ketchum,  Market  street,  (8  mos.) 

4  doz.  Ladies  BPk  ribb'd  Silk  Hose,      (S»     $18.00 

5  "        "       "Dirby"        "      "  &        30.00 
4    "        «         White         "      "  &        15.00 

6  "        "    Dirby, White,  "      »*         (with 
clocks,)  O  28.00 


// 


Bo't  of  Harris  &  Otterson,  (8  mos.) 
a  quantity  of  Mdse.  as  per  their  bill  amt'g  to 


// 


Sold  to  Washington  Troubat,  Muncy,  Lycoming  Co., 

Pa.  (6  mos.) 
3  ps.  Pompadour  Style   Mous.  de  Laines, 

2jj|72Aus. yds.       •  0  $1.25 

2  ps.  Very  costly  do.  " 

|J}20Mets. yds.  O 

1  ps.  Polka  Style  do.  ♦* 

38  Aus. yds.  0 

2  ps.  New  Style  Cashmere,  iq}  20  Aus. 

yds.  & 

3  ps.  Plaid        do.     60  Aus. yds.     & 

2  ps.  Linen  Cambric,  20  Aus. yds.  (a) 


1.00 

1.00 

87i 
1.50 


13 


Received  Cash  of  Richard  Paine  &  Son,  in  full  for  Bill 
of  Mdse.  of  5th  inst.,  amt.  $ 

Less  Discount  5  p'ct. 

f^T  The  above  shows  that  Richard  Paine  &  Son  have 
paid  us  in  full  for  the  Mdse.  sold  to  them  on  the  5th  inst.,  and 


14 


105 


371 


.33 


1732 


895 


73 


37 


450 


00 


350 


00 


303 


86 


106 


i 
i 


B.B. 


S-B. 


LB. 


C.B 


BECKER'S  BOOK-KEEPING. 
[transactions.] 


Philadelphia,  April  \^th,  1847. 


that  we  have  allowed  them  a  discount  of  5  p'ct.  on  the  amount 
of  the  bill.  Therefore,  if  the  am't  has  not  already  been  ear- 
ned to  their  account  in  the  Ledger,  the  net  amount  may  be 
entered  m  the  Cash  Book  to  the  credit  of  «  Mdse."  Before 
this  is  done,  however,  the  transaction  must  be  closed  in  the 
Sales  Book.  If  there  be  not  sulficient  space  at  the  bottom 
of  the  entry  to  deduct  the  discount  after  the  amount  has  been 
footed,  the  amount  must  be  carried  forward  to  the  first  page 
followmg;  then  will  be  the  entry  on  that  page  : 

Richard  Paine  «&  Son,  Wilmington,  Del., 

Am't  bro't  forward  from  page .         ,         $000.00 

Discount  ofl^  6  p'ct.      .        .        .  oo!oO 


The  net  amount  should  be  placed  in  the  outer  column, 
and,  m  order  that  it  may  not  be  added  in  at  the  general  foot- 
ing of  the  sales  on  credit,  red  lines  should  be  drawn  through 
the  figures.  In  the  margin,  the  word  «  Paid,"  with  the  date 
of  payment,  should  be  written  in  red  ink.  Red  lines  must 
also  be  drawn  through  the  total  amount  where  the  sale  was 
first  footed,  and  in  the  margin  the  word  "  Paid"  must  be  writ- 
ten, and  reference  made  to  the  page  to  which  the  transfer 
was  made. 


—  U 


Passed  to  Harris  &  Otterson,  our  Note  at  8  mos.  for 
Bills  of  Mdse.  of  4th  &  12  inst.— Average  date 

I^  The  student  should  here  refer  to  the  rule  given  in  the 
Mercantile  Arithmetic  appended  to  this  work  for  calculating 
average  dates  in  cases  of  this  kind. 


16 


Sold  to  Todd  &  Wainwright,  Milton,  Union  Co.,  Pa., 

J*     irviro  «  «.  _  (^  mos.) 

ff  1878.    2  ps.  Fine  Drab  MillM  Cassimere, 

84^  yds.  &  $3.25 

2346.    2  ps.  Fine  Black   «•  «» 

83|  yds.  (d  3.62^ 

5646.    1  ps.  Olive  Green  Cloth,  24 yds.   &  5^00 


17 


Received  of  Oliver  &  Yamell,  London,  per  Ship  Dela- 
ware, L.  Coffin,  master,  pursuant  to  order,  and  for  our 
account,  10  Cases  Mdse.  amounting,  as  per  Invoice 
to  £745  11a.  3<f.  Stg.,  at  4a.  6rf.  per  dollar  .      * 

Paid  Cash  for  duty  at  Custom  House  on  the 

same,  $994.08 

"      •*      for  Freight  and  other  charges,  35.00 


000 


S.B. 


C.B. 


L  B. 


C.B. 


B.B. 


B.B. 


D.B. 
B.B. 

U.B. 


THIRD  SERIES.— FIRST  PART. 


[transactions.] 


Philadelphia,  April  18M,  1847. 


Sold  to  Reuben  Goodyear,  Harrisburg,  Pa.  (6  mos.) 
8  ps.  Lupin's   Fine  Fr.  Merino,  228  Aus. 


6 

3 

10 


yds. 

"   Superfine  English       do. 
— —  yds. 
Rodgers'  Flannel,  156  yds. 
Welsh  "  67i  " 

Domestic      "        285    " 


& 

112  Aus. 
& 

& 
& 


$1.75 

1.00 

87i 

75 

37i 


19 


Paid  Cash  for  Clarence  Aubrey's  note,  favour  Samuel 
Williams,  due  this  day. 


ff 


Bo't  of  Booth  &  Brown,  (8  mos.) 
a  quantity  of  Mdse.  as  per  their  bill,  amt'g  to 


n 


Paid  Cash  for  Oliver  &  Yamell's  Bill  of  Exchange  in 
favour  of  James  Hamilton,  dated  London,  March 
15th,  1847,  at  sight,  for  je745  11a.  3(f.  Stg.,  exchange 
4a.  %d,  per  dollar. 


20 


Received  of  Stephen  Pancoast,  his  note  at  6  mos.,  in  full 
for  Bill  Mdse.  of  9th  inst. 


// 


Passed  our  several  notes  on  acc't  as  follows : 
To  Julian  &  Paul,  at  8  mos.  from  4th  inst.  being  in 
full  for  Bill  Mdse.  of  same  date. 

To  Booth  &  Brown,  at  8  mos.  from ,  being  the 

average  date  of  two  Bills  Mdse.  bo't  April  10th, 
at  6  mos.  and  Apl.  19,  at  8  mos.,  and  amounting  to 


// 


Received  of  Reuben  Goodyear,  in  full  for  Bill  Mdse. 
of  18th  inst.  amounting  to  $932.75 


Discount  allowed  him  on  the  same,  5  p'ct. 
His  draft  on  Kennedy  &  Co.,  our  favour,  at  3  days  sight, 

for 

Cash  for  balance,  .        ,        .        .        •        • 


107 


932 


500 


75 


00 


700 


00 


932 


75 


108 


BECKER'S  BOOK-KEEPING. 


[transactions.] 
Philadelphia,  Jipril  2lst,  1847. 


s.  B. 


Shipped  to  Henry  Bainbridge,  Charleston,  S.     .,  ; , 
fcJchr.  Alert,  J.  Hand,  Master,  on  his  aec't  a  .     r  s.. 
as  per  his  letter  14  inst.,  the  following  invoice  c 
sundries: 

ff<^B.  3  ps.  Fine  Drab  Mill'd  Cassimere, 

94  yds.  a  $2.37 

"    Blk.  W.  D.  Cassimere, 

64iyd8.  0    2.50 

"    Oxford  mix'd  Cassimere, 

160  yds.  (2»    2.25 

**    Assorted  Green  Cloths, 

154i  yds.  0     5.12^ 

*♦    Brown  Cloths,  63  yds.     &     4.55 
«    Drab  Mix'd  Cloths, 

47^  yds. 
"    Blk.  Cloths,  115  yds. 
"    Blue      "       43^   " 
"    Irish  Linen,  395  ♦♦ 


2  « 

4  *« 

5  " 


^Aj?.  3  " 


5  " 

ir<3>5. 20  " 


25  " 


0 
0 
0 
0 
Shirting  Muslins,  825  yds.  0 

3  packing  boxes,  &  porterage,    . 


(( 


3.00 
5.00 
4.62^ 
55 
12i 


C.B. 


// 


C.B. 


C.B. 


Paid  in  Cash,  Clarence  Aubrey's  acceptance  of  N. 
Cunningham's  Dft.  favour  Robt.  King,  due  this  day. 


f/ 


Paid  Cash  to  (student's  name,)  on  acc't, 


ff 


S.B. 


Received  through  the  Farmers  &  Mechanics'  Bank,  the 
ani't  of  James  Beck  &  Co's.  Dft.  on  Ben  Waters, 
Boston,  due  18th  inst., 


22 


Sold  to  Samuel  Williams,  Chestnut  St.  (6  mos.) 
6  doz.  Ladies  "  Alexander's"  Kid  Gloves,  &  $6.00 

3  "        "  Col'd  " 

4  "    Gent's         "  «« 
3   "        "           Buckskin 

5  "        "  Woojlen 


i« 


« 


0  5.50 

0  8.00 

0  4.0(» 

0  3.00 


// 


C.B.    Paid  Deprez,  Bruno  &  Varnum's  Dft.,  accepted  9th 
inst.,  in  Cash, 


3064 


50 


78 


60 


00 


111 


50 


THIRD  SERIES.-.FIRST  PART. 


[transactions.] 


109 


Philadelphia,  jipril  22d,  1847. 


C.B. 


C.B. 


S.  B. 

and 

C.B. 


Paid  Cash  to  Clarence  Aubrey,  on  acc't, 


23 


Discounted  at  1  p'ct.  per  mo.,  our  note,  favour  Julian  & 
Paul,  due  4—7  Dec.  1847,  am't  $1200.00. 
Discount  allowed  us  on  the  same  for  7  mos. 

&  14  days. 
Paid  them  the  net  am't  in  Cash, 


u 


S.  B. 


Sold  to  Gunn  &  Hopkins,  South  Second  St.,  (Cash.) 
1  doz.  Ladies'  Reviere  Stitched  L.  C.  Hdkfs.,  0  net. 
1   «      Gent's   Cord.     Bord.     "   "      "         &  " 


24 


Sold  to  Thomas  Shotwell,  North  8th  St.     (8  mos.) 
1  Carton  8  Broche  Long  Shawls,         0         $30.00 
1      "     lOTerkerri  "  <»  12.00 

1      "       6  Cashmere  "  ^  10-00 

1     «»     20  Blanket  "  <^  3.00 


S.  B. 

and 

C.B. 


25 


Sold  to  Joseph  Tindall,  Easton,  for  Cash. 

1  ps.  Linen  Cambric,  10  yds,  0  $1.25 

2  ^'        "      Lawn,      20  "  0     2.50 

3  "  Swiss  Muslin,  30  Au's, yds,  0       50 

5  "  F.  Balzorines,  100  Met's, yds.  0        87 i 

2  '*  French  Lawns,  60  Au's, yds.  0        75 

1  doz.  Ladies'  Music  Stitch'd  L.  C.  Hdkfs.,  0  $25.00 


Disc't  allowed  him  on  the  same,  5  p'ct. 


C.B. 


C.B. 


—  26 


Paid  Cash  to  James   Miller,  in  full,  on  account  of 
Clarence  Aubrey,       .        .        •        • 


ff 


Received  Cash  per  Commercial  Bank,  for  Kennedy  & 
Co's  acceptance,  due  .... 


50 


1200 


36 
13 


00 


00 


480 


244 


700 


00 
50 


49    50 


00 


43 


00 


110 


BECKER'S  BOOK-KEEPING. 
[transactions.] 


Philadelphia,  April  30th,  1847. 


S.  B. 


Sold  Merchandise  to  sundry  person's  this  mo.,  as  per 
Petty  Sales  Book,  viz  : 


William  Lancaster, 
John  Rennie, 
Charles  Haines, 
Evan  Mitchell, 
Jackson  Goreras, 
Henry  Knox, 


i4 


(t 


April  7, 

9, 
15, 

18, 
24, 


Fol.  1. 
1. 
2. 
3. 
4. 
6. 


Ik 

it 
It 
t( 


C.B. 


13^  The  above  is  a  list  of  petty  sales  made  this  month, 
as  per  «'  Petty  Sales  Book,"  from  which  each  one  is  con- 
densed in  the  Sales  Book,  in  the  following  manner  : 
William  Lancaster,  April  7,  per  Petty  Sales  Book,  fol.  1,  $23.75 

The  several  accounts  are  posted  to  "Sundry  Debtors," 
each  mdividual  for  his  respective  amount.  For  directions,  see 
the  article  on  "Explanation  of  Accounts  in  the  Ledger,  &c" 


n 


Paid  Cash  this  mo.  as  per  Expense  Book,  viz.: 
April  4th,  For  porteragre  on  Mdse.  50 

"       7th,  For  Fr't  &  porterage  on  two  cases  Mdse. 

per  Merchants'  Line  from  N.  York,  5.50 
10th,  For  porterage,  50 

11th,  For  advertising,  10.00 

13th,  For  1  gro.  Steel  pens,  &  1  bottle  red  ink,  1.25 
19th,  For  porterage,  25 


The  above  are  the  several  items  of  expense  which  the 
cashier  in  actual  business  must  add  to  the  Balance  of  Cash  on 
hand,  in  making  up  his  daily  Cash  account.  At  the  end  of 
each  month,  the  total  amount  of  the  Expense  Book  is  credited 
in  the  Cash  Book,  «  By  Charges  Mdse.,"  without  stating  the 
several  items  that  compose  it  After  the  above  has  been 
entered  in  the  Cash  Book,  the  student  should  ascertain  the 
difference  between  the  Dr.  and  Cr.  sides  of  Cash  acc't  This 
difference  will  be  the  am't  of  Cash  on  hand,  and  the  acc't  is 
closed  "  By  Balance." 


Li 


23 
18 
35 
28 
29 
15 


149  96 


75 
20 
00 
73 
15 
13 


19 


00 


J 


POSTING  AND  PROOF  OF  THE  LEDGER. 


Ill 


POSTING  AND  PROOF  OF  THE  LEDGER. 

Having  entered  all  the  transactions  presented  in  this  part  of 
the  series  in  their  respective  books,  as  indicated  by  the  iniiial 
letters,  the  student  may  post  the  entries,  taking  up  the  books  in 
the  following  order: 

1.  The  Sales  Book,  3.  The  Cash  Book, 

8      «     Invoice  Book,  4.     «     Bill  Book, 

5.  The  Day  Book. 

The  student  must  not  forget  to  have  these  books  correctly 
footed. 

When  the  work  already  described  has  been  completed,  a  Trial 
Balance  must  be  taken  off  to  prove  the  correctness  of  the  post- 
ings, and  to  show  that  every  amount  in  the  original  books  has 
been  posted  to  the  Ledger. 

The  correctness  of  the  Trial  Balance  may  be  proved  by  taking, 
on  another  piece  of  paper,  from  the  five  Day  Books  used  in  this 
series,  an  abstract  of  their  total  footings.  The  sum  of  these  foot- 
ings, if  the  books  be  correct,  will  be  equal  to  the  footings  of  the 
Trial  Balance.     The  following  is  the  form  of  this  abstract: 

ABSTRACT  FROM  THE  DAY  BOOKS. 


Names  of  Books. 

Footing  Totals 
for  April. 

Footing  Totals 
for  May. 

Sales  Book, 
Invoice  Book, 
Cash  Book,  receipts, 

do.         payments. 
Bill     )  Receivable, 
Book,  \  Payable, 
Day  Book, 

0000 

00000 

00000 

0000 

0000 

0000 

000 

00 
00 
00 
00 
00 
00 
00 

$000,000 

00 

The  student  should  preserve  his  abstract  made  according  to 
the  above  form,  as  the  blank  column  will  serve  for  the  purpose 
of  entering  the  Day  Book  footings  for  the  month  of  May. 

If  the  student  has  performed  his  work  satisfactorily,  he  may 
enter  upon  the  second  part  of  this  series.  This  is  composed  of 
purchases  and  sales  in  the  Hardware  business. 

In  what  order  should  the  books  be  posted  ?     How  may  the  correctness  of 
the  Trial  Balance  be  proved  ?   Describe  the  form  of  the  Mstractfrom  the  hooks. 


112 


BECKER'S  BOOK-KEEPING. 


THIRD  SERIES^-SECOND  PART. 


113 


r 


H 


THIRD  SERIES. 

SECOND  PART. 
[transactions.] 


Philadelphia,  May  Isi,  1847. 


C.B. 


The  Fanners  &  Mechanics'  Bank  has  collected  and 
placed  to  our  credit,  the  am't  of  Frank  Howard's 
note,  due  30th  April, 


I.  B. 


LB. 


D.B. 


C.B. 


// 


Received,  pursuant  to  order,  per  the  Merchants'  Line, 
from  A.  Richardson  &  Nephew,  New  York,  an  In- 
Toice  of  Hardware,  amounting  to        .        ,        , 


2 


Bought  of  Childs  &  Maxwell,  (8  mos.)  a  quantity  of 
Hardware,  amounting  as  per  their  bill  to   . 


// 


William  Rodgers'  note,  favour  Clarence  Aubrey,  of 
Jany.  22,  at  3  mos.,  deposited  in  the  Farmers  & 
Mechanics'  Bank  for  collection,  was  this  day  re- 
turned to  us  protested  for  non-payment,  am't  $400.1)0 

Cash  paid  protest  on  the  same,  1.50 


BT  The  amount  of  the  note  mentioned  above,  with  the 
cost  of  protest,  is  to  be  charged  to  the  drawer,  Win.  Rodgers ; 
but  should  he  prove  insolvent,  after  waiting  a  reasonable 
time,  the  whole  am't  of  the  note  and  protest,  with  the  interest 
for  the  time,  would  be  chargable  to  C.  Aubrey. 


4 


C.B. 


8.  B. 


Received  Cash  of  Evan  Mitchell,  in  full  for  his  acc't. 


ff 


Sold  to  William  Rohrman,  Wilmington,  Del.  (6  mos.") 

Cask  ' 

I.     150  lbs.  Hooks  &  Hinges,  &  10  c.     $ 

100  »'     Log  Chain,  0  10  c. 

125  "     Ox       "           .  0  I2i  c. 

20  pair  6i  ft.  Traces,  0  50  c. 

10    "    7    "      "  &  87ic. 

Cask,  1.00 


Cask  fs.oo 

II.    3  doz.  Frying  Pans,  ea.  0 
100  lbs.       Sadirons,         & 
I  doz.  Toy    *« 

Cask, 


4.50        6.00 

1         2    $ 
15  c. 


4.50 
1.50 


Carried  forward, 


2500 


950 


00 


00 


401 


50 


60 


38 


61 


121 


50 


88 


[transactions.] 

Philadelphia^  May  4th,  1847. 

Brought  For w lid. 
Cask                                                       #3.00           6.00 

III.  20  doz.  Hoes,  ea.             6             7  in.        $ 
10    "        "                       6iin.     Cdi    $4 

Cask,                             1.50 

121 

221 

344 

b8 
50 

00 

38 

Cask                                                         #10.00        12.00 

IV.    5  doz.  Knob  Locks,  ea.    5            6  in.      $ 
3    "        "         "              7in    (2>    $15 
1    "        "         "              Sin.                     18.00 

#4  00        6.00        9.00 

5    "   Pad         "    ea.    1         2         3 

#1.00      1.50      2.00      3.00 

10    "    "           "ea.    4        5       6       7 

Cask                             1.00 

MB^  The  manner  in  which  the  sales  of  Casks  No,  2,  3, 
and  4,  are  inserted,  shows  how  several  lots  of  goods,  each 
containing  the  same  quantity,  but  the  price  of  each  being 
different,  may  be  expressed  in  a  single  line.     'I'hus,  the  sale 
of  "  3  doz.  Frying  Pans"  in  Cask  No.  2,  would  be  thus  ex- 
pressed in  the  ordinary  method : 

3  doz.  Frying  Pans,          0         0         $3.00            9.00 
3  «         «         «                \         0           4.50           13.50 
3   «         "         M               %         0           6.00          18.00 

687 

$40.50 

5 

B  B. 

Accepted  A.  Richardson  &  Nephew's  Dft.,  dated  N.  Y. 
3d  inst.,at  15  days  sight,  Wm.  Bradford's  favour,  for 

2500 

00 

8.B. 

Sold  to  Thomas Cartwright,  St.  Louis,  Mo.  (6  mos.) 

Cask 

L    10  doz.  Curry  Combs,  6  Bar.,     (S>  $1.50     $ 

10   "        "         «        8    "        ®     2.00 

5    "   Patent     "        8    "        0>     2.50 

Cask,                    75 

48 
223 

25 
00 

Case                                                      #12.00         18.00 
n.    4  doz.  Corn  Scythes,  ea.  50          54  in.     $ 
6   "      Grass      "            0           $7.00 
6  "         "         »'           0            10.00 

Case,                  1.00 

fi 

271 

1 

25 

C.B. 

Paid  Ca^  to  James  Wilson,  clerk,  on  acc't . 

« 

75 

00 

I 


K% 


15 


114 


BECKER'S  BOOK-KEEPING. 


[transactions.] 


Philadelphia,  May  eth,  1847. 

C.B. 

Bought  of  David  Preston,  for  Cash,  two  lots  in  Monu- 

ment Cemetery,  Nos.  21  &  22,  Section  E,  at     . 

7 

150 

00 

S.  B. 

Sold  to  Thomas  Hart  &  Co.,  Reading,  Pa.,  for  Cash, 

and 

1  doz.  Plated  Stirrups,                                       $10.50 

C.  B. 

1  "     Ladies      "                                               6.00 

2  "     Bridle  Bitts,            0           $4.00           8.00 
1  Gro.  xMartingale  Rings,                                     7.50 
1    "     Buckles,  3  in.,                                           3.00 

35 

00 

• 

Disc'toflfSp'ct.     . 

Q 

B.B. 

Received  from  Henry  Bainbridge,  per  mail,  on  acc% 
Williams  &  HaxalPs  Dft.,  his  favour,  dated  Rich- 
mond, Va.,  May  3d,  at  60  days  sight,  on  Warring- 
ton &  Trump,  N.  Y.,  which  we  have  deposited  in 

the  Farmers  &  Mechanics'  Bank  for  collection,  . 

12 

1800 

00 

S.  B. 

Sold  to  Stephen  Pancoast,  Pittsburg  Pa.        (6  mos.) 

4  Gro.  Knives  &  Forks,  No.  1.   (3    $6.00    $ 

5  "       do.             "        "    2.  0      9jOO 

I    "       do.             •*         "    3.                         15.00 

#2.00      2.00      3.00 

1  Doz.   do.             •«     ea.  4       5        6 

#3.00      4.50      6.00 

4    "      do.             "     ea.  7       8       9 

50  c.    1.00    a.oo 

6  pair  Carvers,              ea.  10      11      12 

1.50      3.00      3.50 

3    «*        »'                     ea.  13      14      15 

Cask,                      1.50 

191 

50 

1 

13 

Valentine  Ketchum  having  failed,  compounds  with  us 

at  50  c.  on  the  dollar,  for  goods  sold  him  on  the  r2th 

ult.,  amounting  to  $450.00 

Received  in  Payment, 

B.  B     An  accepted  Dft.  by  L.  Hill  &  Co.,  Thomas  Scott's 

favour,  on  Wm.  Rhoads,  Trenton,  at  10  days  from 

•                10th  inst.,  for 

175 

00 

.C.B. 

Cash, 

50 

00 

D.B. 

Lost  the  Balance, 

* 

225 

00 

450'  00  1 

THIRD  SERIES.— SECOND  PART 


115 


[transactions.] 


Philadelphia,  May  I4fh,  1847. 

C.B. 

Received  Cash  of  Caleb  Parker,  on  acc't  of  Clarence 
Aubrey,  for  one  quarter's  rent  of  Dwelling-house  in 
Fifth  St.,  due  12th  inst., 

// 

150 

00 

8.B. 

Sold  to  Edmund  Winpenny,  Cleaveland,  Ohio,  (6  mos.) 

I.      6  Gro.  Barlow  Knives,  No.  1,  (S  $  8.00  $ 
3    "        do.          "          "   2,  (2>   12.00 

#2.00    3.00 

6  doz.  2  Blade     "       ea.     3       4 

#4.50    6.00 

2    "         "          "       ea.     5       6 

#4.00    6.00    9.00 

1  "    3    "           "       ea.     7       8      9 

#2.00    3.(K)    4.50 

2  »*    1    "  Pen "       ea.    10     11    12 

Cask,               1.00 

174 

87 

00 
75 

Box                                                  #1.00    1.50    300 

IL      6  Trays,             ea.     20    24    28             $      ' 

#200    6.00    10.00 

1  doz.  W^aiters,  ea.     10    12    14  in. 

#6.00  12.00  18  00 

1  nest       "        ea.  i  1      2      3 

Box                    75 

// 

261 

75 

D.B. 

C.B. 
B.B. 
D.B. 

Received  of  Austin  Atwood  &  Co.  for  their  note  No.  3, 
due  this  day,  am't  $1000.00, 

Cash, ■      . 

Extension  for  balance  by  new  note  at  30  days  $500.00 
Interest  added  on  the  same  for  33  d'ys,               2.75 

500 
502 

00 
75 

Ic^  When  a  note  is  in  part  renewed,  as  in  the  above  case, 
it  is  best  to  charge  the  old  note,  with  the  interest  on  the  trans- 
action, to  the'drawer  or  maker  of  the  note,  and  to  credit  him 
for  the  things  received  in  payment,  which,  in  this  case,  will 
balance  his  account. 

Iff 

1002 

75 

D.B. 

B.B. 
C.B. 

Effected  a  settlement  with  Wm.  Rodgers  for  his  note, 

Clarence  Aubrey's  favour,  due  25th  ult.  and  protested, 

am't  of  .note  and  protest  on  the  same  per  his  account 

being                                                                 $401.-50 

Interest  on  the  above  from  25th  Apl.  to 

date,  is  —  days. 

200 

00 

Received  in  Payrnent, 

E.  Cole's  Dft.  fav.  John  Warr,  on  Rex  &  Perry,  at  30 

days  sight,  accepted  April  21st,  for    . 
Cash  for  balance, 

116 


riki 


! 


S.  B. 


C.B. 


C.B. 


C.B. 


C.B. 


C.  B. 


BECKER'S  BOOK-KEEPING. 


[transactions.] 


Philadelphia,  May  20th,  1847. 


Sold  to  Samuel  Williams,  Chestnut  St.,  (6  mos.) 
150  lbs.  Cast  Steel, 
100  "     Blister" 
100  "  American  « 
6  doz.  D  Handle  Shovels, 
6    "    D       *»      Spades, 
6    "     Long"  " 

6    "       "     "       Shovels, 
6    "    Grave  " 

50  M.  Sparobles,  f  in. 
50  M.  do.  I  in. 
50  M.       do.        i  in. 

05     06    07 

100  M.  Tacks,  ea.   3    4    6  os. 

Forwarded  the  above  per  Boat  Echo,  to  John  Patterson, 
Arch  Spring,  Huntingdon  Co.,  as  per  his  order  of 
19th  inst. 


& 

18  c. 

& 

121 

& 

6 

0 

$7.50 

m 

7.50 

m 

9.00 

& 

9.00 

m 

12.00 

m 

10 

m 

11 

0 

12i 

21 


Received  Cash  of  Todd  &  Wainwright,  on  acc't,  per 
hands  of  Mulford  &  Alter,  .... 


23 


C.  B.    Paid  in  Cash,  A.  Richardson  &  Nephew's  Dft.  ac- 
cepted 5th  inst.  and  now  due. 


ff 


Rec'd  Cash  of  Wm.  Rhoads,  for  his  acceptance  of  L. 
HUrs  Dft.  due  this  day. 


24 


Rex  &  Perry  paid  us  in  Cash  the  am't  of  their  accept- 
ance. 


ff 


D.B. 


Received  Cash  of  Wm.  Lancaster,  in  full,  for  his  acc't. 

31 


Paid  Cash  this  mo.  as  per  Expense  Book. 
May  1,   For  Frt.  &  porterage  on  Invoice  of 
Hardware  from  N.  Y.,  per  Mer- 
chants' Line,  #23.75 
*»    2,   For  Porterage,  50 
20,   For  Advertising,                                    10.00 


t( 


// 


Credit  James  Wilson,  clerk,  for  2  mos.  services  ren- 
dered—Salary $800  per  annum. 


350 


25 


300 


34 


133 


00 


25 


33 


CLOSING  THE  BOOKS  OF  THE  THIRD  SERIES.  J[17 


CLOSING  THE  THIRD  SERIES. 

Having  entered  in  the  several  books  the  transactions  pre- 
sented this  month,  the  stitdent  will  post  up  the  books,  in  the 
order  described  in  the  first  part  of  this  series.  The  exami- 
nation of  the  footings,  the  taking  of  a  Trial  Balance  and  of  the 
Cay  Book  abstracts,  are  next  to  be  attended  to. 

In  actual  business,  it  would  now  be  necessary  to  take  an  ac- 
count of  "  Stock,"  or  to  write  in  a  book,  called  the  Inventory 
Stock  Book,  the  present  value  of  all  the  goods  in  the  store, 
unsold.  As  a  general  rule,  however,  merchants  rale  goods 
a  Uttle  below  their  market  value. 

In  the  absence  of  goods,  we  have  valued  the  Balance  sup- 
posed to  remain  on  hand,  unsold,  at  $10959.14.  This  will 
enable  the  student  to  determine  the  gain  or  loss  on  the  goods 
sold. 

The  Store  Fixtures,  &c.,  are  valued  at  five  p'ct.  less  than 
cost,  which  deduction  is  allowed  for  wear  and  tear. 

The  Grand  Balance  Sheet  for  the  two  months,  April  and  May, 
is  now  to  be  made  out.  For  the  present  series,  it  should  be 
ruled  somewhat  differently  from  that  heretofore  in  use.  The 
form  used  in  the  Introductory  Set  will  serve  as  a  guide  in  ruling 
this.  The  first  column  of  this  sheet  is  for  the  Ledger  folio  ;  the 
second  is  for  the  titles ;  the  third  embraces  three  subordinate 
columns,  e^ch  of  which  is  a  double  money  column.  The  first 
of  these  double  columns  is  appropriated  for  the  Dr.  and  Cr. 
footings  of  the  several  acc'ts  for  the  month  of  April ;  the 
second  contains  the  same  for  the  month  of  Mav;  and  the  third 
the  "  Total"  Dr.  and  Cr.  accounts  for  the  two  months.  The 
heading  of  the  April  and  May  columns  is  "  Postings  to  the 
Ledger  from  April  1st  to  May  31st,  1847."  The  fourth  column 
contains  the  value  of  the  "Property  Unsold."  The  fifth  is  for 
"  Profit  &  Loss,"  Dr.  and  Cr.  The  sixth  is  headed  with  the 
student's  name.  Dr.  and  Cr.  The  seventh  is  for  Clarence  Au- 
brey, Dr.  and  Cr.,  and  the  eighth  for  Balance,  Dr.  and  Cr. 

The  sheet  being  ruled  in  this  manner,  the  Trial  Balance  for 
April  is,  first,  to  be  copied ;  the  amount  being  placed  in  the 
column  appropriated  to  that  month,  the  folios  of  the  account? 
being  placed  in  the  first  column.  Then  the  Trial  Balance  for 
May  is  to  be  transcribed  in  its  {)roper  column,  observing  that  to 


118 


BECKER'S  BOOK-KEEPING 


CLOSING  THE  BOOKS  OF  THE  THIRD  SERIES. 


119 


*  :4 


all  those  acconnts  whose  names  are  already  entered  in  the  Title 
column,  il  is  only  necessary  to  place  the  amounts  in  their  re- 
spective columns,  headed  May,  and  opposite  the  title  to  which 
they  respectively  refer.  All  new  accounts  are  afterwards  to  be 
entered  in  regular  order,  with  their  respective  amounts  opposite 
the  titles. 

Thirdly,  When  the  folios,  titles,  and  amounts  have  been  en- 
tered, the  total  amount  of  each  account  is  to  be  placed  in  the 
column  headed  "Total."  If  this  "Total"  be  correct,  it  will 
agree  with  the  total  obtained  from  the  Ledger. 

Fourthly,  The  value  of  the  properly  on  hand  is  to  be  en- 
tered in  the  column  headed  "  Property  Unsold." 

Fifthly,  There  should  be  placed  in  the    "  Profit  &  Loss" 
columns,  the  gains  or  losses  on  such  accounts  as  cannot  be  other 
wise  balanced  than  by  closing  them  into  Profit  &  Loss. 

Sixthly,  The  balance  of  the  student's  account,  as  it  now 
stands,  should  be  entered  in  the  columns  headed  with  his  name. 

Seventhly,  The  balance  of  his  partner's  account  is  to  be 
placed  in  the  column  headed  "  Clarence  Aubrey,"  taking  care 
to  put  the  amount  on  the  same  line  with  the  name  in  the  Title 
column. 

Eighthly,  The  balances  of  the  several  accounts  are  to  be  en- 
tered in  the  "Balance"  column  according  to  the  directions  given 
in  the  Introductory  series. 

The  amounts  being  all  properly  arranged,  the  student  may 
proceed  to  close  the  Balance  Sheet,  observing  the  following 
order. 

1.  Add  up  the  columns  headed  April. 

2.  Add   «  «*  "       May. 

3.  Add   «  "  "       Total. 

4.  Add   "  "  "       Property  Unsold. 

5.  Add  "  «  «       Profit  &  Loss. 

1    6.  Close  Profit  &  Loss  columns  for  the  difference, 

"  To  (student's  name)"  for  his  one  half  gain,  and 
"To  Clarence  Aubrey"  for  his  one  half  gain. 

7.  Add  up  the  columns  headed  Balance  and  take  the  differ- 
ence between  the  two,  observing  that  this  difference  must  be 
equal  to  the  sum  of  the  student's  and  his  partner's  net  capital. 

8.  Close  (student's  acc't)  "To  Balance,  for  his  net  capital." 

9.  Close  Clarence  Aubrey  "  To  Balance,  for  his  net  capital." 
After  all  these  amounts  have  been  entered,  it  will  be  found 


that  all  the  columns  which  have  Dr.  and  Cr.  balance  of  them 
selves. 

When  the  student  has  closed  his  Balance  Sheet,  he  must 
make  closing  entries  in  the  Day  Book,  corresponding  with  those 
made  on  his  Balance  Sheet,  for  the  balances  of  the  accounts  in 
the  Ledger  must  agree  with  those  in  the  Balance  column  of  the 
Balance  Sheet. 

To  assist  him  in  classifying  these  entries,  we  give  the  follow- 
ing statement.  The  places  occupied  by  O's,  are  to  be  filled  with 
the  proper  amounts.  The  differences,  placed  to  the  right,  are 
the  gains  or  losses  on  the  several  accounts. 

According  to  the  Balance  Sheet  taken  this  day,  the  following 
accounts  show  gains,  which  are  to  be  closed  into  "Profit  & 
Loss,"  viz.: 

Merchandise, 

Total  sales  $0000.00 

Goods  on  hand,  valued  at  00000.00 


Interest, 


Total  cost, 

Am't  of  Cr.  side  being 
Am't  **  Dr.    «      « 


$00000.00 
00000.00 

$0000.00 

000.00 

00.00 

00.00 

$0000.00 

The  following  accounts  show  losses,  and  must  be  balanced 
"By  Profit  &  Loss." 
Store  Fixtures, 

Value  per  Dr.  side  $000.00 

Present  worth  000.00  $00.00 


Charges  Mdse. 

To  balance  acc't 


00.00 
$00.00 


The  above  should  be  entered  and  posted  before  the  follow- 
ing entry  is  made. 

On  examination  of  "Profit  &  Loss,"  we  find  that  our  busi- 
ness during  these  two  months  have  produced  us  a  net  gain, 
which  is  to  be  divided  and  entered  as  follows : 

To  (Student's  name,)  for  his  one  half  net  gain  $0000.00 

To  Clarence  Aubrey,  for  his  one  half  net  gain  0000.00 

ioooooo 


120 


BECKER'S  BOOK-KEEPING. 


rOURTH  SERIES. 


121 


The  Ledger  should  now  be  balanced  according  to  the  rules 
for  the  "periodical  closing  of  accounts,"  and  the  amounts 
brought  down,  as  when  the  acc'ts  are  to  be  left  open  and  con- 
tinued 

In  what  order  are  the  books  of  this  part  of  the  series  to  be  posted  1  At  what 
prices  do  merchants  generally  Take  their  stock  on  hand,  unsold  1  How  are 
Store  Fixtures  valued  1  Why  !  Describe  the  manner  of  rulingr  the  "  Grand 
Balance  Sheet"  in  this  series.  What  is  first  to  be  inserted  in  this  sheet  1 
What  next?  How  are  these  Trial  Balances  to  be  entered  1  What  is  to  be 
entered  in  the  third  place  1  What,  fourthly  1  Fifthly]  Sixthly?  Seventhly? 
Eighthly  ?  In  closing  the  Balance  Sheet,  what  is  the  first  step  ?  The  second  ? 
The  third  ?  The  fourth  ?  The  fifth  ?  The  sixth  ?  The  seventh  ?  The  eighth  t 
The  ninth  ?  What  must  be  done  when  the  Balance  Sheet  has  been  closed  1 
Repeat  the  form  of  the  statement  of  gains  and  losses.  What  entry  is  to  be 
made  after  the  statement  has  been  entered  and  posted  ?  As  the  Ledger  is  to 
De  left  open,  that  it  may  be  continued,  how  must  it  be  balanced  ? 


•*  m  I 


FOURTH    SERIES. 

This  series  relates  principally  to  the  Shipping  and  Commission 
business.  In  it  the  student  is  represented  as  acting  in  the 
capacity  of  Book-keeper  and  Cashier  to  the  firm  of  Hastings 
&Co. 

The  Principal  Books  used  in  this  series  are  the  Cash  Book^ 
Bill  Book,  Day  Book,*  and  Ledger. 

The  Auxiliary  Books  are  the  Commission  Sales  Book,  Ac- 
counts Current  Book,  Invoice  Outward  Book,  Check  Book, 
Bank  Book,  and  Letter  Book. 

The  initial  letters  given  in  the  margin  before  each  transaction 
refer  to  the  Principal  Books  only. 

As  tlie  use  of  these  books  have  already  been  fully  described 
in  the  first  and  second  series,  the  student  is  supposed  to  be  now 
familiar  with  the  forms  of  entry  adopted  to  them. 

In  this  series,  we  have  omitted  the  Blotter,  which,  in  actual 
business,  contains  the  entries  for  all  transactions,  except  those 
relating  to  Cash.     The  entries  are  made  in  this  book  in  Journal 

*  The  Day  Book,  in  actual  bosinefis,  in  8oraetime«  known  as  the  Jounitl,  the  onlj 
difference  between  the  two  being  that,  in  the  former,  the  entries  are  accompanied  with 
explanations,  whilst  in  the  latter  the  explanations  are  dispensed  with.  In  this  series, 
the  terms  are  applied  indiscriminately.  The  explanations,  however,  are  given  in  this 
series,  whatever  name  may  be  used  to  designate  the  book. 


form,  as  usual,  and  from  it  they  are  transcribed  daily  with  all 
the  explanations  in  the  Journal,  from  which  they  are  posted  to 
the  Ledger. 

After  the  books  have  been  opened,  that  is,  after  entries  of 
the  partner's  stock  accounts  have  been  made  and  posted,  the 
student,  as  a  general  rule,  should  post  the  entries,  when  he  has 
filled  two  pages  of  the  Journal.  By  adopting  this  method,  he 
can  refer  to  accounts  in  the  Ledger  when  occasion  requires  him 
to  do  so. 

To  assist  him  in  making  entries  in  the  Auxiliary  Books  ac- 
companying this  series,  directions  for  their  use  are  given  on  the 
cover  of  the  blank  books  in  which  they  are  to  be  kept. 

In  this  series,  as  in  actual  business  of  this  kind.  Merchandise, 
in  the  hands  of  a  concern  and  on  their  own  account,  is  kept 
under  specific  titles,  which  are  derived  from  the  name  of  the 
goods  which  it  represents. 

Goods  shipped  on  consignment,  or  delivered  into  the  hands  of 
an  agent,  by  the  merchant  or  by  others,  according  to  his  instruc- 
tion, on  his  own  or  on  joint  interest  and  account  with  others, 
are  represented  under  the  Ledger  caption  of  Adventure.  Each 
Adventure  is  numbered  in  the  order  of  its  occurrence,  and  its 
number  must  be  the  same  as  that  which  is  placed  over  the  in- 
voice of  the  shipment  or  speculation,  as  copied  in  the  Invoice 
Outward  Book. 

Goods  received  on  consignment,  that  is,  to  be  sold  for  account 
of  others,  and  goods  received  from  abroad,  on  our  own  account, 
or  on  joint  account  with  others,  are  represented  under  the  title 
of  Sales.  Each  Sales  is  numbered  and  in  the  order  in  which 
the  Invoice  for  the  same  is  received.  The  number  must,  in  each 
case,  be  the  same  as  that  placed  over  the  corresponding  Invoice, 
copied  in  the  Commission  Sales  Book. 

The  name  of  the  party  whose  property  the  commission  mer- 
chant sells  is  never  given  in  the  transactions.*  The  Book- 
keeper, therefore,  makes  in  a  small  book,  a  memorandum  of  the 
^  goods  and  the  number  of  the  Sales  to  which  they  belong,  as 
indicated  by  the  Commission  Sales^Book.  This  is  made  at  the 
time  the  goods  are  received  and  for  the  purpose  of  assisting  the 
Book-keeper  in  making  his  Journal  entries  from  the  Waste 

•  In  Forwarding  houses,  the  name  of  the  owner  of  the  goods  is  given  in  the  entry 
in  the  Blotter. 

L  16 


■*'i 


I 


122 


BECKER'S  BOOK-KEEPING. 


FOURTH  SERIES. 


123 


Book,  or  Memorandum  Book.  In  this  book  the  pjirticulars  of 
the  transaction  are  recorded  in  the  following  order :  first  is  given 
the  date  ;  secondly,  the  name  of  the  party ;  thirdly,  the  descrip- 
tion  of  the  goods ;  and,  fourthly,  the  price.  The  margin  on  the 
left  is  for  the  purpose  of  noting  the  quantity  delivered,  and, 
when  all  the  goods  mentioned  in  the  entry  have  been  delivered, 
the  word  "  Delivered"  is  written,  in  red  ink,  in  front  of  the  entry. 
When  a  memorandum  of  purchases  is  made  in  this  book,  the 
word  "Bo't"  is  prefixed  to  the  name  of  the  party,  to  distin- 
guisli  the  purchase  from  a  sale.  No  entries  of  such  memoran- 
dums are  made  in  the  Journal  till  the  bill  of  the  goods  has  been 
received. 

We  would  recommend  to  the  student  the  adoption  of  the  plan 
just  described.  By  making,  on  a  piece  of  paper,  a  memorandum 
of  the  Invoice  of  goods  received,  he  will  be  able  to  tell  at  once 
the  sales  which  should  be  credited  when  any  of  the  invoiced 
goods  are  disposed  of  and  the  sales  that  should  be  charged  for 
expenses  paid  on  any  of  the  said  goods,  either  on  the  receipt  of 
them  or  afterwards. 

Before  making  the  Day  Book  entries  for  each  partner's  in- 
vestment, entries  must  be  made  of  those  items  having  this 
mark  {%/')  before  them  in  the  Stock  and  Proof  Sheet  and  they 
should  be  made  in  those  books,  in  which  the  original  entry  of 
them  should  always  appear. 

The  Day  Book  entry  for  each  partner's  Stock  acc't  should 
contain  the  whole  amount  of  his  investment ;  therefore,  those 
items  which  have  been  entered  first  in  the  books,  as  directed 
above,  must  be  checked  off  in  them,  as  the  transcript  of  each 
item  is  made. 

After  the  books  have  been  thus  opened,  the  student  will  strike 
the  Balance  of  Cash,  which  will  give  the  amount  on  the  Dr. 
side  of  the  new  account  to  be  opened  in  the  Cash  Book.  Then, 
all  sums  received  or  paid  away  by  the  concern,  whether  by 
check,  bank  not*,  or  specie,  are  to  be  entered  in  the  Cash  Book 
at  the  time  when  received  or  paid  away.  As  has  been  stated 
in  the  other  series  of  this  work,  the  entries  of  the  Cash  Book" 
may  be  Journalized  in  the  Day  Book,  daily,  semi-weekly,  or 
weekly.  In  this  series  we  have  deferred  the  process  of  Jour- 
nalizing till  the  end  of  each  month,  in  consequence  of  the  limited 
number  of  transactions  in  a  work  of  this  kind. 


In  the  transactions  of  this  series  all  amounts  of  Cash  received 
in  any  one  day  should  be  entered  in  the  Bank  Book  as  one  de- 
posit after  the  same  have  been  entered  in  the  Cash  Book. 

The  amoinits  of  Cash  represented  as  having  been  kept  on 
hand  (that  is  out  of  bank)  to  meet  the  contingent  expenses  of 
the  establishment,  are,  in  this  series,  noted  in  the  transactions, 
and,  of  course, they  are  not  entered  in  the  Bank  Book  as  deposits. 

When  a  check  has  been  drawn  on  the  bank  for  any  sum  of 
money  to  be  applied  by  the  Cashier  as  "change,"  no  entry  for 
the  same  is  to  be  made  in  the  Cash  Book.  An  entry  is  to  be 
made  merely  in  the  Check  Book,  to  show  that  a  certain  sum  has 
been  withdrawn  from  the  bank.  The  amount  withdrawn  must, 
in  actual  business,  be  accounted  for,  in  balancing  the  Cash  ac- 
count, as  money  kept  on  hand,  unless  it  has  been  appropriated 
for  small  payments. 

In  this  series,  as  in  business,  all  large  amounts  paid  in  Cash 
are  paid  by  check  on  the  bank,  and  are,  therefore,  entered  in 
the  Check  Book,  before  an  entry  is  made  in  the  Cash  Book. 

To  what  business  does  the  fourth  series  relate?  How  does  it  represent  the 
student  1  What  are  the  Principal  Books  used  in  it!  What  are  the  Auxiliary 
Books?  What  books  of  this  series  are  represented  by  initials]  How  is  the 
Journal  of  this  series  kept?  How  often  should  the  entries  be  posted,  as  a 
general  rule  ?  What  advantage  arises  from  this  method  1  How  is  the  student 
assisted  in  making  entries  in  the  Auxiliary  Books  1  How  is  Mdse.  acc't  kept 
in  this  series?  What  does  "Adventure"  acc't  represent?  What  are  repre- 
sented on  the  title  of  "  Sales  ?"  How  is  each  Adventure  characterized  ?  Each 
Sales  ?  Is  the  name  of  the  owner  of  the  goods  given  in  the  transactions  ?  What 
means,  therefore,  does  the  Book-keeper  take  to  assist  his  memory  ?  Describe 
the  Memorandum  Book.  Give  the  order  in  which  the  details  of  transactions 
are  to  be  entered  ?  How  is  a  purchase  distinguished  from  a  sale,  in  this  book? 
When  are  entries  of  such  memorandum  made  in  the  Journal  ?  What  plan  is 
submitted  to  the  student  for  the  accomplishment  of  the  purposes  of  a  memo- 
randum book?  What  Day  Book  entries  should  be  made  first?  What  must 
the  Day  Book  entry  for  each  partner's  stock  account  contain  ?  What  precau- 
tion must  be  taken  in  consequence  ?  How  is  the  am't  on  the  Dr.  side  of 
Cash  at  the  opening  of  the  new  acc't  to  be  ascertained  ?  At  what  time  are 
entries  to  be  made  in  the  Cash  Book?  How  often  is  the  Cash  Book  Journal- 
ized in  this  series?  Is  this  the  universal  practice  in  business?  In  what 
book  should  Cash  received  generally  be  entered  after  it  has  been  entered  ia 
the  ('.  B.  ?  How  can  the  student  tell  whether  he  is  to  enter  the  Cash  recM 
in  the  Bank  Book  or  not?  In  what  book  is  money  withdrawn  from  Bank,  to 
be  kept  on  hand,  entered  ?     Why  is  it  not  entered  in  the  Cash  Book  1 


124 


I 
I 


D.B. 


^ 


f  \ 


■ 


I,' 


D.B. 


BECKER'S  BOOK-KEEPING. 


STOCK  AND  PROOF  SHEET. 


Philadelphia,  June  1st,  1847. 


Inventory  of  the  Joint  Effects  of  Edward 
Hope,  as  the  Special  Partner,  and  Osgar 
Hastings  and  Thomas  Merrick  as  the  Act- 
ing Partners,  trading  under  the  title  of 

Hastings  &  Co., 

as  per  articles  of  agreement  entered  into  the 
28th  ult.,  for  the  purpose  of  conducting  the 
General  Merchandising  and  Commission 
Business,  Hope  is  to  share  |,  Hastings  and 
Merrick  are  to  share  each  |  of  the  gains  and 
losses.  Interest  accounts  are  to  be  kept  with 
the  parties. 

Edward  Hope's  Effects  are  as  follows: 

v^Cash,  on  Deposit  in  Philadelphia  Bank,     . 
y/J.  Clark  &  Co.'s  set  of  Exchange,  dated  N.  Y.,  May 
27th,  at  30  days  sight,  Win.  Ward's  favour,  on  Bar- 
ing &  Co.,  London,  for  ^6411  18s.  Stg.,      $1830.66 
Premium  9^  p'ct.  allowed  him  on  do.,  169.34 


Total, 
__  The  student  will  remember  that  in  the  "Rules  for 
opening  and  closing  accounts,"  we  stated  that  Bills  Receiv- 
able and  Bills  Payable  must,  invariably,  be  debited  or  credited 
for  the  amount  on  the  face  of  the  Note,  Dft.,  or  Bill  of  Ex- 
change, at  the  time  of  receiving  it  or  passing  it  away.  There- 
fore the  premium  allowed  E.  Hope  on  the  above  bill  must  be 
charged  to  « Interest,"  «  Profit  &  Loss,"  or  "  Premium"  acct. 
In  this  series  we  have  placed  it  to  Interest.  When  we  dis^ 
pose  of  the  bill,  the  amount  of  premium  obtained  on  it  must 
be  credited  to  the  account  to  which  we  placed  the  charge 
when  we  received  the  bill. 

Osgar  Hastings'  Effects  are: 

\/Cash  on  dep.  in  Phila.  Bank,    . 
1500  Bbls.  S'fine  Flour,  valued  at 
Brig  Patrick  Henry,  valued  at   . 


Total, 


8000    00 


D.B. 


2000    00 


10000 


00 


2500    00 
6187 !  50 


8000 


16687 


00 


50 


D.B. 


FOURTH  SERIES. 


125 


[stock  and  proof  sheet  continued.] 


Philadelphia,  June  1st,  1847. 


Thomas  Merrick's  Effects  are: 

\/Ca8h  on  dep.  in  Phila.  Bank,     .... 
200  Bbls.  Rye  Whisky,  6240  gals.         0     20  c. 

v^Morris  &  Young's  Dft.  his  fav.  on  Wray  &  Co.,  Bal- 
timore, at  60  days  sight,  accepted  April  13th, 

%/ Henry  Bishop's  note,  Hicks  &  Co.'s  favour,  dated 
March  8th,  at  3  mos.     ..... 

Total, 

The  above  two  notes  we  have  deposited  in  Phila.  Bank 
for  collection. 


Recapitulation. 

Edward  Hope's  total  investment, 
Osgar  Hastings'  total 
Thomas  Merrick's  total 


(( 


4( 


$10,000.00 
16,687.50 
13,800.00 


Hasting  &  Co.'s  total  capital, 


$40,487.50 


10000 
1248 

2000 
552 


00 
00 

00 

00 


13800 


00 


[transactions.] 


Philadelphia,  June  2d,  1847. 


Shipped  Starch  and  Flour  per  Schr.  Mary,  A.  Gihon, 
master,  bound  to  New  York,  and  consigned  to  Ser- 
voss  &  Cavada  there,  to  be  sold  for  our  account  and 
risk,  which  we  bought  as  follows  : 

From  Chas.  Baeder&Co. 

<h)     100  Bbls.  Starch,  net  14755  lbs.  (S  5  c.     $ 


<^ 


100  Boxes    " 


3576  "   (2)6^ 


Taken  from  Store, 

W,R.  500  Bbls.  S'fine  Flour,  O 

Charges,  for  shipping-expenses  on  do.   viz. : 

Inspection  and  Lining  Flour,  0  3  c. 

Drayage  and  Labour 


$4^ 


$ 


20.50 


Effected  Insurance  by  the  American  Insurance 
Co.  on  this  shipment,  valued  at  $3084,61  at 
ip'ct.   Policy,  $1.00,        .... 


3084 


61 


L2 


126 


BECKER'S  BOOK-KEEPING. 


FOURTH  SERIES. 


127 


* 


ill 


I 


tti 


[transactions.] 


Philadelphia^  June  3d,  1847. 


C.B. 


C.B. 

and 

B.B. 


Sold   for   Cash  to  Wm  Jones,  at  10  p'ct.  Premium, 
J.  Clark  &  Co.'s  set  of  Exchmze,  received  of  Ed- 
ward Hope,  1st.  inst.  for  j^-lil  18*.  Stg., 
Premium,  10  p'ct. 


We  have  deposited  $1800  of  this  amount  in  Phila. 
Bank :  the  balance,  JJ213.72,  being  kept  on  hand  for 
Cash  purposes. 


// 


C.B. 


RB. 


Discounted  at  |  p'ct.  per  mo.  Vicar  &  Rice's  note, 
favour  Edward  Mason,  at  4  mos.  from  12th  ult. 
for  $1764.50. 

Discount  allowed  us  on   do.   for  —  days, 
Paid  the  net  amount  by  our  check  on  Phila.  Bank. 


Received  per  Boat  General  Taylor,  from  Cresswell  & 
Co.,  Lewistown,  Pa.,  to  be  sold  for  their  account  and 
our  risk, 

18  Bars   Iron, 
233  Bundles,   " 
165  Flat  Blooms. 
Paid  Cash,  for  Freight  on   do.   15  Tons,  &    $5.00 
Wharfaore,  "         &  20  c. 

Drayage  to  Store,     "         &  37^ 


i( 


ti 


2013 


8 


Sold  to  Benners,  Badger  &  Co. 
200  Bbls.  Rye  Whisky,  6240  gals. 


0 


25  c. 


11 


Wm.  Forepaiigh  &  Co.,  Boston,  John  Duplaine,  Halifax, 
N.  S.,  and  ourselves,  have  agreed  that  each  of  us 
may,  from  time  to  time,  make  the  others  shipments 
of  such  goods  as  shall  be  deemed  best  adapted  to 
their  respective  markets,  with  instructions  for  the 
sale  of  the  same.  Each  party  is  to  share  alike  in 
charges  and  in  gains  and  losses,  and  to  be  allowed 
2^  p'ct.  commission  on  sales  and  shipments  on  Co.'s 
account. 

An  Exchange  acc't  in  Co.  for  premiums  on  remittances, 
is  to  be  kept  by  us  with  the  other  two  parties,  each 
party  to  share  alike  in  the  gains  or  losses  on  the  same. 

In  pursuance  of  said  agreement,  Wm.  Forepaugh  &  Co. 
advise  us  that  they  shipped  on  the  8th  inst.  per  Schr. 
Ellen,  M.  Parker,  master,  to  Halifax,  N.  S.  and  con- 


72 


83 


62 


[transactions.] 


Philadelphia,  June  llth,  1847. 

D.B. 

signed  to  John  Duplaine  there,  to  be  sold  on  Co.'s 
acc't, 

1000  Bbls.  S'fine  F^our,   0  $4A ,                   f 
200  Bbls.  Rye        '<•        0     sX, 
100  Bbls.  Corn  Meal,     0     2  i, 

1 
I 

1 

Inspection  &  Lining,   (2)  3  c.                         $ 
Drayage,  $25,  Labour  &  Cooperage,  $18.50, 
Commission  on  {t>.5262.50  fa)  2^  p'ct. 
Insurance  on  $5518.95  at  ^  p'ct.  and  Policy  $1, 

Due  June  8th,  1847. 
Our  J  am't  of  the  above  Invoice  is         .        .        • 

5518 

95 

1839 

65 

C.B. 

Paid  to  Chas.  Baeder  &  Co.i  in  full  for  bill  of  Starch, 
bought  2d  inst.,  by  our  check  on  Phila.  B'k. 

1** 

C.B. 

The  Phila.  Bank  has  collected  and  placed  to  our  credit, 
the  am't  of  Henry  Bishop's  note,  due  llth  inst. 

D.B. 

Sold  to  Rob't  Wayne,  (6  mos.) 

165  Flat  Blooms,  net  10  Tons,              &           $65, 

Cwt.    qr.    lb 

10  Bars  f  inches,  net    10     0    0         O               85 

692 

50 

I'S 

D.B. 
C.B. 

Received  per  Brig  Swan,  H.  Johnson,  master,  from 
Boston,  and  consigned  to  us  by  Wm.  Forepaugh  & 
Co.  there,  to  be  sold  on  their,  John  Duplaine,  Hali- 
fax, N.  S.,  and  our  equal  joint  acc't, 
400  Bbls.  No.  1  Mackerel. 
375    "        "  2        " 
50    "        "3        " 
Amounting  per  Invoice  to  $4887.33,  {due  June  Gth,)  of 

which  our  J  am't  is 

Paid  Freight  on  the  above  825  Bbls.  mackl.  O  35  c.  by 
our  check  on  Phila.  Bank. 

// 

1629 

11 

B.B. 

and 

D.B. 

Received  of  Benners,  Badger  &  Co.,  their  note  at  60 
days  from  8th  inst.  in  full  for  am't  of  their  acct.  $ 
Interest  added  on  do.  for  63  days. 

1 


I 


t   i^\ 


I 


128 


D.B. 


B.B. 


C.B. 


C.B. 


D.B. 

and 

B.B. 


BECKER'S  BOOK-KEEPING. 


[transactions.] 


Philadelphia^  June  16M,  1847. 


Bo't  of  James  Brown  &  Co.,  (4  mos.) 

(y     100  Hhds.  Kentucky  Tobacco,  net  99,000  lbs. 
at  4  c. 

Shipped  the  same  per  Ship  Herman,  P.  Schwartz, 
master,  to  Amsterdam,  and  consigned  to  Boehm  & 
Son  there,  to  be  sold  for  our  acc't. 

Charges  for  shipping  expenses  on  the  above,  viz. : 

Drayage,  Labour,  and  Cooperage, 
Effected  insurance  by  the  Atlantic  Insurance  Co.  on 

this  shipment,  valued  at  $4098.97  at  2i  p'ct.  Pol.  $1. 

and  passed  our  note  for  the  same,  at  60  days. 


n- 


// 


Received  through  the  Philada.  Bank,  the  amount  of 
Morris  &  Young's  Dft.  on  Wray  &  Co.,  Baltimore, 
due  15th  inst. 


18  — 


Received  per  Ship  Dolphin,  W.  Harris,  master,  from 
Carson  &  Trasel,  New  Orleans,  to  be  sold  for  their 
acc't  and  risk, 

50  Hhds.  N.  O.  Sugar,  net  61600  lbs. 

Paid  Cash  for  Freight  on  do.  by  our  check  on  Philada. 

Bank, 

"        •*    for  Labour,  rolling  do.   into  Store, 


// 


Accepted  Wm.  Forepaugh  &  Co.'s  Dft.,  dated  Boston, 
June  15th,  at  3  days  sight,  favour  J.  R.  Lamb,  for 


D.B. 


D.B. 


19 


Sold  to  George  Bellis  &  Co., 
100  Bbls.  No.  1  Mack'l,  O  $9, 
50    "        "   2       "        &     6.50, 


20  Hhds.  N.  O.  Sugar,   (6  mos.) 
net  24860  lbs.  0 


6  c. 


if 


Sold  to  Henry  Barron,    (6  mos.) 
50  Bundles  Iron,     y*g  rods, 

^0         "  "  t        "     Ton,.  Cwt.  qrs.  lbs. 

30       «         «      li      "        3     4     3    22,0  $90. 


35 


4098 


50 


97 


150 
3 


153 


00 
00 


00 


1800 


00 


27161  60 


FOURTH  SERIES. 


[transactions.] 


Philadelphia,  June  20th,  1847. 


C.B. 


D.B. 

and 
B.B. 


D.B. 


Received  per  Boat  Echo,  from  Stewart  &  Horrel,  Alex- 
andria, Pa.,  to  be  sold  for  their  acc't, 
1800  Bus.  Wheat, 

25    "     Cloverseed, 
500  Bbls.  Flour. 

Paid  for  Freight,  by  our  check  on  Phila.  Bank, 
on  Wheat,      ®   17  c.  -p-  Bus., 
"  Cloverseed,®  20  c.  ^     " 
Flour,        O  50  c.  ^^  Bbl. 


(( 


'/ 


Received  of  Robt.  Wayne,  his  note  at  6  mos.  from  the 
11th  inst.,  to  balance  his  acc't. 


// 


D.B. 


Shipped  per  Brig  Patrick  Henry,  John  Wade,  master, 
bound  to  Boston,  and  consigned  to  Wm.  Forepaugh 
&  Co.  there,  to  be  sold  for  their,  John  Duplaine,  and 
our  equal  joint  acc't, 

2000  Bus.  Yellow  Corn,  (Bo't  of  Wm.  Smith,)  &  41  c. 
521     "         "         "   (Bo'tofBoulton&Co.)(2)42c. 

KKK)  Bbls.  S'fine  Flour,  (from  Store,)   (S)  $41, 

Charges,  Inspection  &  Lining,  3  c.  ^  Bbl.,      ^ 
Cooperage  $8.50,  Labour  Il2.00, 

Commission  on  $5413.82  at  2^  p'ct. 
Insurance  effected  by  the  American  Ins.  Co.  on  this 
shipment,  valued  at  $5642.98,  &  |  p'ct.    Policy  $1. 

Wm.  Forepaugh  &  Co.'s  ^  am't  of  the  above,  $1880.99 
John  Duplaine's  |     "  "        »*     1880.99 

Our  (Hastings  &  Co.)      |     ♦*  **        «*      1881.00 


129 


561 


00 


5642 


98 


Due  June  20/A. 


$5642.98 


S**  In  this  transaction  the  Adventure  is  to  be  debited  for 
the  whole  amount  of  cost  and  charges  in  one  entry ;  and,  in 
another,  the  same  account  is  to  be  credited  for  the  share  ad- 
vanced on  account  of  Wm.  Forepaugh  &  Co.  and  of  John 
Duplaine.  The  difference  between  the  two  sides  of  the  Ad- 
venture, when  posted,  will  be  the  remaining  one  third  of  the 
whole  am't  constituting  Hastings  &  Co.'s  share  of  the  invest- 
ment 

// 


D.B. 


Effected  insurance,  by  the  American  Ins.  Co.,  on  the 
Brig  Patrick  Henry  to  Boston  and  back  to  Philada., 
val.  at  $8081.82,  at  1  p'ct.     Policy  $1. 


17 


!| 


t    I 


\i  * 


130 


D.  B. 
C.B. 


D.B. 


.1 


C.B. 


D.B. 


BECKER'S  BOOK-KEEPING. 


[transactions.] 


Philadelphia,  June  2lst,  1S47. 


Delivered  to  James  Brown  &  Co.  to  close  their  account, 

am't  -^i.^lJliO.OO, 
Our  note  at  4  mos.  from  16th  inst.  for   .         .         • 
Paid  the  balance  (less  l^  p'ct.  disc't)  by  our 

check  on  Philada.  Bank,  # 

Discount  allowed  us, 


23 


Received  advice  from  Bates  &  Rice,  New  York,  per 
their  letter  of  20th  inst.,  that  they  shipped  per  Ship 
Northumberland,  D.  Evans,  mater,  pursuant  to  our 
order,  to  the  address  of  Carson  &  Trasel,  New  Or- 
leans, to  be  sold  for  our  acc't, 

y^\  178^  1  Case  Indioro  Blue  Satinet, 
"^  28  ps.  840^  yds. 

2  Cases  Plaid  Cassimeres, 

#  176   456  }  91K)  yds. 
2  Cases  Fancy  Striped  Jeans, 

^220   53^J  }  1057  yds.  0 

2  Bales  4-4  Scarlet  Flannels, 

^'^  3?5i }  7a5i  yds.  0 

Drayaae  31  c,    Bilfof  Lading,  &c.  50  c. 
Commission  on  5^2292.16  at  2i  p'ct. 


2000 


00 


3960 


00 


0       62^  c. 
&  $1.12i^ 
37i 


45 


f 


^  In  making  the  Day  Book  entry  of  this  shipment,  we 
exclude  tlie  items  from  the  explanation,  and  refer  for  parti- 
culars to  the  Invoice  received,  a  copy  of  which  must  he  made 
in  the  Invoice  Outward  Book. 


24 


Paid  our  acceptance  of  Wm.  Forepaugh  &  Co.*s  Dft. 
due  this  day,  by  our  check  on  Philada.  Bank. 


ff 


Shipped  per  Schr.  Anna,  E.  Brown,  master,  bound  to 
Richmond,  Va.,  and  consigned  to  Williams  &  Haxall 
there,  for  their  accH  and  risk,  as  per  their  letter  of 
19th  inst. 

100  Bbls.  Rye  Whisky,  (Bo't  of  Carlisle  &  Gaskill,) 
33,   136,  37,  34i,32,   31,  30i,36,K/ 
;^i  32  *     )  /* 

3.5,^36^,34,   35,  37,  39,   40,   32, )  j, 

31,  31,    34,   36,  S 
37,   38,   40,  37i,a5,   34,   31,   3i3, 

32,  30,   31,   30i,  38,   36,   34,   35,  ^  , 

37,  130,  3U,:3;3,  31,  31i,34,  37, 

38,  39^,40,  32,  3:1, 


2350 


27 


D.B. 


C.B. 


D.B. 


FOURTH  SERIES. 


[transactions.] 


131 


Philadelphia,  June  241  h,  1847. 


36,  38i,35,   38,  31,  30,  30^,32, 
31,  37,  39,  31,  30,  33i,34,   36, 

37,  34,  33,   32,  30,  33,  31^,29, 
37,  38,  3.ji,33,  :30, 

33,  34,  a5i,31,  30,  32,  37,   36, 

37^,38,  32,   31,  30,  32,  29i,  33, 

31,  30,  36,   37, 


Charges — for  Drayage, 
Commission  on  $ at  2^  p'ct., 


gals.  ^  21  c. 
$5.00 


IW  It  is  not  necessary  that  the  contents  of  each  barrel, 
and  the  strength  of  the  whisky  be  given  in  the  Day  Book, 
since  to  insert  them  would  merely  be  giving  a  copy  of  the  bill 
of  purchase  received  of  Carlisle  &  Gaskill.  The  entry  should 
be  made  in  the  same  manner  as  that  of  the  sale  of  the  8th 
inst.  after  the  student  has  ascertained  the  whole  contents  of 
the  100  Bbls. — A  full  copy  of  the  shipment  must  lie  made  in 
the  Invoice  Outward  Book.  For  explanation  of  the  calcula- 
tion, see  Mercantile  Arithmetic  in  this  work. 


745  I  72 


// 


Sold  to  J.  L.  Sprague  &  Co. 
250  Bbls.  No.  1  Mackerel, 
300    "        "2        " 
40    »•        "  3 


i( 


$9i, 

4i. 


26 


Received  per  Brig  Sun,  Mark  Snow,  master,  from  Hali- 
fax, N.  S.,  and  consigned  to  us  by  Quick,  Baker  & 
Co.  there,  to  be  sold  for  their  acc't, 

27  Casks  Oil. 
Paid  Cash,  for  Freight,  $  4.25 

Duty  &  permit,  35.60 


4433 


75 


a 


C.  B. 


C.B. 


28 


Delivered  to  Carlisle  &  Gaskill,  our  Dft.  at  3  days  sight, 
on  Wm.  Forepaugh  &Co.,  Boston,  in  full  for  bill  of 
Whisky,  bought  24th  inst. 


ff 


Paid  Bates  &  Rice's  Dft.  on  us  at  sight,  fav.  Ben.  Mor- 
ris, by  our  check  on  Phila.  Bank. 


// 


Paid  the  American  Ins.  Co.  by  our  check  on  the  Phila. 
Bank,  in  full  for  premiums  due  them  for  insurances. 


39 


85 


2350 


27 


'  IT ' 


tM' 


fl 


132 


BECKER'S  BOOK-KEEPING. 


[transactions.] 


Philadelphia,  June  28///,  1847. 


C.13. 


Sold  to  John  Andrews,  for  Cash, 

1800  Bus.  Wheat, 

lb.  oz. 

100  Bus.   57.5  100  Bus. 

60. 
59. 

58.8 
60.3 
61. 


100 
100 
100 
100 
100 
100 
100 
100 


4t 
it 
ti 


ii 

i( 

it 


60. 

59.10 

58.6 


100 
100 
100 
100 
100 
100 
1(K) 
100 


ti 
t( 
t( 
u 
n 
n 
(i 
ii 


Headraeasurinor  on  do.  7  c.  ^  hundred, 


lb.  oz. 
59. 

58.6 
57. 
60.4 
61.2 
60. 
59.10 
58.3 
57.6 
= Bus.   (2)    $1J. 


^^  For  the  manner  of  calculating  the  weight  of  Wheat, 
see  Mercantile  Arithmetic 


D.B. 


D.B. 

and 

B.B. 

C.B. 


D.B. 


28 


Received  of  J.  L.  Sprajrue  &  Co.,  in  full  to  balance 
their  acc't,  am't  {^44:i3.75, 

An  accepted  Dft.  drawn  by  Lemuel  Willcox,  in  their 
favour  on  WilJcox  &  Dallett,  Boston,  at  60  days  sight 
from  20  ult.  which  we  havo  remitted  to  Wm.  Fore- 
paucrh  &  Co.,  for 

Their  Note  at  30  days  from  24th  inst.  (dep.  in  Philada. 
Bank,) 

Cash  for  balance, 


1998 


02 


Disc't  off  on  L.  Willcox's  Dfu  for  28  days,     $ 
their  note  "  33  days. 


ii 


$ 


B.B. 


29 


Received  of  Servoss  &  Cavada,  N.  Y.,  an  accU  Sales 
of  Starch  &  Flour  shipped  per  Schr.  Mary,  on  the  2d 
inst.,  net  proceeds  beinjr,  {Jue  Junt  '2^lh,  1847,)  . 


2000 
1000 


00 
00 


J. 


D.B. 


C.B. 


On  examination  of  Adventure  No.  1,  we  find  that  it 


shows  a  irain  of 


f0 


Paid  Bou1ton&  Co.  in  full  for  bill  of  Corn  of  20lh  inst. 
by  our  check  on  Philada.  Bank, 


3865 


34 


FOURTH  SERIES. 


[transactions.] 


Philadelphia,  June  30ih,  1847. 


D.B. 
and 
B.B. 
C.B. 


Received  of  Geo.  Bellis  &  Co.  in  full  to  balance  their 
acc't,  their  note  at  6  mos.  for  bill  of  Sugar  of  19th 


inst. 


Cash  for  bill  of  Mackerel  of  same  date, 


D.B. 


// 


B.B. 

and 

D.B. 


Sold  to  Alexander  Morton  &  Son,   (6  mos.) 

-ion   n  ^^*-   •!"•     '*' 

133  Bundles  assorted  Iron,   18     2    24 
8  Bars  |  in.  "800 


0 


$75 

85 


// 


Received  of  Henry  Barron,  his  note  at  6  mos.  from  19th 
inst.  in  full  for  bill  of  Iron  of  same  date. 


D.B. 


// 


Closed  Sales  No.  1,  for  Cresswell  &  Co.'s  consign- 
ment of  Iron  per  Boat  General  Taylor,  all  sold,  and 
furnished  them  an  acc't  sales — Total  sales  being 

$1088.93 
Charges  already  posted,  83.62 


$1005.31 


JIfter  Charges, 

Storage  &  Labour  on  Sales  '$1088.93  at  1  p'ct.      . 
Commission  &  Guarantee  on  Sales  $1088.93  at  5  p'ct. 
Cresswell  &  Co.'s  net  proceeds,  {due ) 

tW  All  sales  must  be  closed  in  the  Sales  Book  before 
making  Day  Book  closing  entries  f«r  them. 


// 


C.  B.    Paid  Cash  this  month,  as  per  Petty  Cash  Book, 

for  sundry  expenses,    .... 

I^"  The  student  should  now  balance  his  Cash  Book  and 
Journalize  it  in  the  Day  Book,  in  the  same  manner  as  in  the 
Second  Series.  The  difference  between  the  two  sides  of 
Cash  acc't  in  the  Ledger  must  equal  the  Balance  brought 
down  in  the  Cash  Book  for  the  next  month ;  and  in  actual 
business,  it  must  also  equal  the  Balance  of  Cash  in  Bank 
and  on  hand. 

When  the  student  has  drawn  off  from  the  Ledger  the 
montnly  Trial  Balance  to  prove  the  correctness  of  the  post- 
ings, and  has  ascertained  that  all  his  work  has  been  per- 
formed satisfactorily,  he  is  prepared  to  enter  upon  the  next 
month's  business. 


M 


133 


104 


18 


10 
54 


89 
45 


80 


75 


• 


134 


BECKER'S  BOOK-KEEPING. 


FOURTH  SERIES. 


135 


I 


C.B. 


D.B. 

D.B. 

and 
B.B. 


M 


((         it 


[transactions.] 


Philadelphia,  July  1st,  1847. 


Received  per  Brig-  Emma,  John  King^,  master,  from 
Kastport,  193^  Pons  Plaster,  consigned  to  us  by 
G.  &  R.  Hobbs  there,  to  be  sold  for  tljeir  account. 

Paid  Freight  on  the  same  by  oar  check  on  Phila.  B'k. 


-  3 


Received  from  John  Duplaine,  Halifax,  N.  S.,  an  acc't 
sales  of  Flour  &  Corn  Meal,  shipped  per  Schr.  Ellen, 
by  Wm.  Forepaugh  &  Co.,  Boston,  on  their,  John 
Duplaine,  and  our  equal  joint  acc't,  total  net  proceeds 
being  £r21hl  Os  4rf.*     {Due  July  5/A,  1847.) 

Our  3  net  proceeds  of  the  above  adventure  is         . 

Received  also  from  the  same,  a  remittance  of  H.  Mil- 
ward's  set  of  exchange,  dated  Halifax,  N.  S.,  June  21, 
at  10  days  sight,  John  Duplaine's  favour,  on  Nairac 
&  Hardwick,  London,  for  j£400  Stg.,  at  4a.  6rf.  per 
dollar,  $ 

Exchange  at  7i  p'ct  premium, 


"  Britton,  Coopers  &  Co.'s  set  of  Exchange, 

dated  June  23d,  at  sight,  L.  Cheatham's  favour,  on 

Rathbone,  Burnside&  Co.,  Liverpool,  for  ^550  Stg., 

at  4s.  <od*  per  dollar,  $ 

Exchange  at  8J  p'ct.  premium. 


Note.  The  premiums  paid  on  all  remittances  on  company 
acc't,  are  to  be  charged  to  "  Exchange  in  Co.  with,  4-c.,"  and 
when  the  bills  are  sold,  the  same  acc't  must  be  credited  for 
whatever  premiums  may  be  received. 

•  Nova  Scotia  jE  =  ^4  U.  S.  currency. 


if 


D.  B.    On  examination  of  Adventure  No.  2,  to  Halifax  in  Co., 
we  find  that  our  share  of  the  net  gain  is 


D.B.     Sold  to  Joseph  Bowman, 

50  Bbls.  No.  1  Mackerel,  ®  $9.25, 

25    "       "    2        "  (S»  7.00, 

10    "       "    3        "  (2»  500, 


$ 


2  Casks  Oil,  2JJ  }  49  ^g^  ^^  ^y^       ^^     j^^  ^ 
I  Cask    do.         37    ' -  ^ 


«'« 


2.30 


95 


4557 


21 


721    82 


[transactions.] 


Philadelphia,  July  5lh,  1847 


C.B. 


D.B. 


C.B. 


D.B. 


Paid  Cash  to  Wm.  Smith,  in  fall,  by  our  check  on 
Philada.  Bank. 


Sold  to  Dehart  &  Spear, 
189i  Tons  Plaster, 
4      "    fine  do. 


0 

0 


$2.70 
1.35 


// 


D  B. 

and 
L  B. 


C  6. 


C.B 


C.B. 


D.B. 

and 

B.B. 


Paid  Cash  to  Capt.  Howe,  of  Steamboat  Hudson,  for 
towing  Brig  Emma  up  and  down  the  Schuylkill  to 
discharge  her  cargo  of  Plaster,  • 


8 


Sold  to  Bishop  &  Walker,   (6  mos.) 
30  Hhds.  N.  0.  Sugar,  net  36740  lbs. 


0     5ic. 


10 


Received  of  Williams  &Haxall,  their  Dft.  dat«d  Rich- 
mond, Va.,  July  7th,  at  sight,  our  favour,  on  Ger- 
hart,  O'Brien  &  Gray,  N.  Y.,  being  in  full  for  In- 
voice of  Whisky  shipped  them  oh  24th  ult.,  which 
we  have  deposited  for  collection  in  the  Phila.  Bank. 


rr 


Sold  for  Cash,  at  9^  p'ct.  premium,  to  Kane  &  Collins, 
H.  Milward's  set  of  exchange  on  Nairac  &  Hard- 
wick, London,  for  £400  Stg.  at  4s.  Ocf.         $ 

Britton,  Coopers  &  Co.'s  set  of  exchange  on 
Rathbone,  Burnside  &  Co.  for  £550  Stg., 
at  4s.  6(f.,  $ 


Exchange  at  9i  p'ct.  premium. 


11 


Received  of  Joseph  Bowman,  the  amount  of  bill  Mack- 
erel, &c.,  sold  him  5th  inst.,  in  Cash. 


// 


Received  Cash  of  Dehart  &  Spear,  in  full  for  bill  of 
Plaster  sold  them  6th  inst. 


// 


517    05 


15 


00 


4623 


32 


Received  Notes  from  the  following  persons  to  balance 

their  respective  accounts,  viz. : 
From  Alexander  Morton  &  Son,  at  6  mos.  from  30th  ult. 
Bishop  &  Walker,  at  6  mos.  from  8th  inst. 


i( 


r 


136 


I 


U.B. 


D.B. 


D.B. 


I'    .'1 


C.  B 


1,  -^'11 
1^.  ii 


D.B. 


BECKER'S  BOOK-KEEPING. 


[transactions.] 


Philadelphia,  July  12 th,  1847. 


The  Philada.  Bank  has  collected  and  placed  to  our 
credit,  Williams  &  Haxall's  Dft.  on  Gerhart,  O'Brien 
&  Gray,  N.  Y.,  received  lOth  insU 


15 


Closed  Sales  No.  6,  for  G.  &  K.  Hobbs'  consirrnment 
of  Plaster  per  Brig  Emma,  all  sold,  and  transmitted 
them  an  acc't  sales. 

Total  sales  being  $517.05 

Charges  posted,  265.85 

$251.20 


Jfter  Charges.  

Advertising,  50  c.   Weighing  &  Scale  Hire,  $12.09 

Commission  on  sales  $017.05  at  2^  p'ct. 

G.  &  R.  Hobbs'  net  proceeds,  {Due  July  — ,) 


it 


Sold  Walter  &  Souder, 
400  Bbls.  S'fine  Flour, 
75    "     scraped     " 
25    «    condM      « 


0 
0 
0 
Inspection,  1  c.  ^  Bbl* 


$4,V 
3.94 

31 


18 


Paid  Peter  Johnson,  by  our  check  on  Phila.  Bank,  for 
1  Keg  Specie,  containing  5000  Five-franc  pieces,  at 
93  c. 

The  above  we  have  shipped  per  Brig  Robert  Wain, 
J.  Little,  master,  bound  toLaguayra,and  consigned 
to  Whitney,  Brandon  &  Co.  there,  to  be  exchanged 
for  our  acc't,  the  net  proceeds  of  the  same  to  be  in- 
vested in  Coffee,  Hides,  and  Indigo. 


// 


Closed  Sales  No.  2,  for  consignment  of  Mackerel  to  us 
per  Brig  Swan,  on  equal  joint  acc't  with  Wm.  Fore- 
paugh  &  Co.  and  John  Duplaine,  all  sold,  and  trans- 
mitted to  each  of  the  partners  an  acc't  sales. 

Total  sales  being       $61346.25 

Charges  posted,  288.75 

$6a57.50 

Jfter  Charges, 

Advertising,  50  c.    Wharfage,  $16.50 
Storage,  $41.   Labour  &  Cooperage,  $8.25 


f 


Commission  on  sales  $6346.25  at  2^  p'ct.  

Wm.  Forepaugh  &  Co.  for  their  |  net  proceeds  {Due  — ) 
John  Duplaine,  for  his  |  "         **        {Due — ) 

Our  ^  net  proceeds,  $  ) 

Our  i  first  cost,        $ \  "®^  ^*"' 


251 


2169 


20 


25 


D.B. 


1428 


39 


D.B. 


D.B. 


D.B. 


FOURTH  SERIES. 


[transactions.] 


137 


Philadelphia,  July  20th,  1847. 


Remitted  to  G.  &  R.  Hobbs,  our  Dft.  at  sight,  in  their 
favour,  on  Wm.  Forepaugh  &  Co.,  Boston,  for  the 
net  proceeds  sales  of  Plaster,  due  them. 


21 


Drew  on  Servoss  &  Cavada,  N.  Y.,  as  per  their  letter, 
at  10  days  date,  our  favour,  for  net  proceeds  of  sales, 
due  June  25th,  1847. 
Interest  on  do.  from  June  25th  till  Aug.  3,  is  39  dys. 


24 


Closed  Sales  No.  3,  for  Carson  &  Trasel's  consign- 
ment of  50  Hhds.  Sugar  per  Ship  Dolphin,  and  fur- 
nished them  an  acc't  sales,  all  sold. 
Total  sales  being       $3512.30 
Charges  posted,  153.00 


.Sfter  Charges. 
Advertising,  50  c.   Storage,  $12.50 
Cooperage, 

Commission  on  sales  $3512.30  (S  2i  p'ct. 
Carson  &  Trasel,  net  proceeds,  {Due ) 


$3359.30 


$13.00 
5.50 


26 


3890 


46 


18 


3359 


50 


30 


Sold  to  Barton,  Rex  &  Co.   (4  mos.) 

24  Casks  Oil, 
J^  35  31,  4):  8  29i,  J^  6  30^,  #  31  37, 


D.B. 


C.B. 


43  4U,  7  29, 

44  m,  39  29, 

37  31,  33  31, 

45  31,  40  25^, 

38  30,  15  30, 


34  28, 
47  28, 
30  38, 
12  30, 
42  29i, 


24  29, 
32  30, 
36  303, 
41  29, 

25  30i, 


-(-    -f-      s  gals.®35c. 


// 


Sold  to  Jacob  Miller, 
25  Bus.  Cloverseed, 


0 


$4.25 


// 


Received  of  Walter  &  Souder,  in  full,  for  their  acc't, 
their  check  on  Pennsylvania  Bank,  which  we  have 
deposited  in  the  Philad.  Bank. 


M  2 


18 


138 


BECKER'S  BOOK-KEEPmG. 


FOURTH  SERIES. 


139 


'  t 


;'!r  1.5 


[transactions.] 


Philadelphia,  July  21  thy  1847. 


D.B. 


Closed  Sales  No.  .5,  for  Quick,  Baker  &  Co.'s  con- 
sig-nment  of  27  Casks  of  Oil,  per  Brig  Sun,  and  ren- 
dered them  an  account  sales. 

Total  sales  being  f  2)0.12 

Charges  posted,  39.65 

?256.*27 


-^fter  Charges, 
Advertising,  .50  c.  Gauging,  -$2.70,  Cooperage,  $3.77 
Storage,  ^^1.00.    Labour,  rolling  into  store,  31  c. 


C.B. 


Commission  on  sales  $296.12    .7   5  p'ct. 
Quick,  Baker  &  Co.'s  net  proceeds,  (^Due ) 


// 


The  Philada.  Bank  has  discounted  Geo.  Bellis&  Co.'s 
Note,  due  19-22  Dec,  am't  $1491.60. 
Discount  off  on   do.   for  —  days. 
Cash  for  net  am't  passed  to  our  credit, 


C.  B. 


// 


Loaned  Cash  to  Thomas  Cavanaugh,  on  his  Bottomry 
Bond,  lobe  repaid  with  20  p'ct.  premium,  to  Charles 
Fenderich,  of  Amsterdam,  for  investment  on  our  acc't, 
ten  days  after  the  arrival  of  his  Ship  Ann  Chase  in 
that  port. 


D.B. 


D.B. 


u 


Received  from  Wm.  Forepaugh  &  Co.,  Boston,  an  acc't 
sales  of  Corn  and  Flour,  shipped  June  20th,  per  Brig 
Patrick  Henry  on  their,  John  Duplaine's,  and  our 
equal  joint  account,  net  proceeds  being — (Due  Aug, 
Ibth,  1847,)  $8548.50,  of  which 

Our  i  is 


// 


Adventure  No.  4,  in  Co.  to  Boston,  shows  a  gain  which 
is  our  share,  and  is  to  be  closed  into  Profit  &  Loss, 


28 


C.B. 


The  Philada.  Bank  has  placed  to  our  credit  the  am't  of 
J.  L.  Sprague  &  Co.'s  not«,  due  27th  inst. 


// 


C.B. 

_ 


Received  Cash  of  the  Atlantic  Ins.  Co.  for  the  am't  in- 
sured on  Invoice  of  Tobacco,  per  Ship  Herman,  she 
being  lost,  with  her  whole  cargo,  on  her  voyage  to 
Amsterdam. 


256    27 


1491 


3000    00 


60 


[transactions.] 


Philadelphia,  July  28th,  1847. 

D.B. 
C.B. 

Closed  Sales  No.  4,  for  Stewart  &  Horrell's  consign- 
ment ot  Wheat,  Cloverseed,  and  Flour,  per  Boat  Echo, 
all  sold,  and  furnished  them  an  account  sales. 
Total  sales  being        $4267.26 
Charges  posted,             561.00               $3706.26 

Jfter  Charges, 
Measuring  1825  Bus.  Grain,  Co)  ^  c,                       $9.13 
Carrying   do.    into  Store,  and  Storage,  (S*  li^  c. 
Storage  on  Flour,  $15.    Labour,  $5.    Adver- 
tising, 50  c. 

Commission  on  1800  Bus. Wheat,  ®  1  c.  ^  Bus.  $ 
Do.         "    500  Bbls.  Flour,  (2)  12^  4^  Bbl. 
Do.         "    sales  Cloverseed  $106.25  (2)  2ip'ct. 

Stewart  &  Horrell's  net  proceeds,  for  which  we  have 
remitted  them  our  check  on  the  Philada.  Bank. 

3706 

26 

D.B. 
D.B. 

Received  of  Carson  &  Trasel,  N.  0.,  an  account  sales 
of  Mdse.  shipped  June  20th,  per  Ship  Northumber- 
land, from  N.  Y.,  to  be  sold  for  our  acc't — ^net  pro- 
ceeds being   {Due  Oct,  15/A  1847.) 

They  also  advise  us  that  they  shipped,  13th  inst.,  per 
Ship  Iron  Queen,  James  Spencer,  master,  pursuant 
to  order  and  for  our  acc't,  to  the  address  of  Lloyd  & 
Ritchie,  London,  100  Bales  Cotton,  amounting,  per 
Invoice  to  —  {Due  Aug,  18/A,  1847.) 

3240 
3574 

00 
63 

D.B. 

Close  Adventure  No.  5,  (to  N.  0.)  into  Profit  &  Loss. 

on 

D.B. 
and 
B.B. 

Received  from  Wm.  Forepaugh  &  Co.  a  remittance  of 

Gilbert  Buxton's  bill  of  exchange,  dated  Boston,  July 

24th,  fav.  Broadhead  &  Co.,  at  sight  on  Rothschild 

&  Co.,  London,  for  £500  Stg.,  at  4s.  Oc?.  per  dollar. 

Exchange  at  9i  p'ct.  premium. 

// 

2427 

77 

D.B. 

and 

B.B. 

Accepted    Carson  &  Trasel's  Dft.   James  Lawson's 
favour,  at  30  days  sight,  for       ...        . 

1500 

1 

00 

D.B. 

Capt.  Wade  advises  us  that  he  paid,  July  25,  to  Wm. 
Forepaugh  &  Co.  on  our  account,  per  our  instructions, 
the  balance  of  Freight  and  disbursements  on  Brig 
Patrick  Henry  for  her  last  voyage,  am't  being  as  per 
his  acc't  rendered. 

425 

65 

140 


BECKER'S  BOOK-KEEPING. 


[transactions.] 


li 


Philadelphia,  July  301  h,  1847 


m 


D.B. 

aiid 

B.B. 


C.B. 


Accepted   Cresswell  &  Co.'s  Dft,  at  10  days  sight, 
Jackson  HalPs  favour. 


31 


C.B. 


Sold  to  Price,  Scott  &  Stewart,  for  Cash,  at  11  p'ct. 
premium,  Gilbert  Buxton's  bill  on  Rothschild  &  Co., 
London,  recM  29th  inst.  for  £5L)0  Stg.  at  4a.  6rf.  per 
dollar. 

Exchange  at  11  p'ct.  premium. 


// 


i 


Paid  Cash  this  mo.  as  per  Petty  Cash  Book,  viz. 

For  Store  Expenses,  Advertising,  &c. 

"   Drayage, 

**   Cooperage,  .... 

'*    Measuring  &  Headmeasuring  Grain, 
"    Gauging  Oil,       .... 
**  Inspection  on  Flour,    . 


// 


D.B. 


till 


\''i 


Exchange  acc't  in  Co.  with  W.  F.  &  Co.  and  J.  D.  ex- 
hibits a  gain  as  per  statement  in  the  Account-Current 

Book  of  $ which  amount  is  to  be  divided  and 

credited  as  follows,  viz. : 
To  Wm.  Forepaugh  &  Co.  for  their  J  gain, 
"   John  Duplaine,  for  his  ^     " 

"    Profit  &  Loss,  for  our  ^     " 

t^  The  student  should  make  out  the  account  current  of 
Wm.  Forepaugh  &  Co.,  and  John  Duplaine,  and  before 
Journalizmg  the  above,  he  should  make,  on  a  half  sheet  of 
paper,  an  abstract  of  the  «« Exchange  Acc't  in  Co."  from  the 
Ledger,  in  form  as  described  in  the  Account  Current 
(blank)  Book,  with  this  exception,  that  no  interest  is  to  be 
computed  on  the  account  When  the  statement  is  proved 
correct,  it  ought  to  be  copied  in  the  Account-Current  Book, 
after  Wm.  Forepaugh  &  Co.  and  John  Duplaine's  accounts 
currents,  each  of  whom  would,  in  actual  business,  receive  a 
copy  of  this  statement 


f/ 


D.B. 


D.B. 


l!      i    ' 


Furnished  Wm.  Forepaugh  &  Co.  an  abstract  of  their 
Account-current,  with  an  interest  accH  to  Aug.  1st, 
1847.  Balance  of  interest  in  their  favour,  and  a mount- 
insr  to  — 


ff 


Furnished  John  Duplaine  an  abstract  of  his  Acc't-cur- 
rent,  with  an  interest  account  to  Aug.  1st,  1847.  Ba- 
lance of  interest  in  his  favour  amounting  to 


FOURTH  SERIES. 


[transactions.] 


500 


00 


2466 


66 


50 
30 
45 
10 
2 
15 


153 


00 
50 
00 
39 
70 
00 


59 


Philadelphia,  July  3lst,  1847. 


D.B. 


D.B. 


Furnished  Carson  &  Trasel  an  abstract  of  their  Ac- 
count-current, with  an  interest  account  to  Aug.  1st, 
1847.  Balance  of  interest  in  our  favour,  amounting 
to  — 

J^  The  student  will  make  out  the  Acc't-current  of  Car- 
son &  Trasel  before  Journalizing  the  above. 


// 


Credit  the  Accounts  of  the  following  persons  for  2  mos. 
interest  for  am't  of  their  respective  investment,  viz. : 
Edward  Hope, 
Osgar  Hastings, 
Thomas  Merrick. 

BP*  The  Student  should  here  take  a  «  Trial  Balance." 


it 


D.B. 


The  following  is  a  statement  of  the  accounts  which 
have  produced  gains  these  two  months,  and  which 
are  to  be  closed  into  Profit  &  Loss  : 
Brig  Patrick  Henry,  amount  of  Cr.  side,  $  000.00 
present  value  of  Brig,     8000.00 

$0000.00 

amount  of  Dr.  side,  0000.00 


Flour,  all  sold,   amount  of  Cr.  side, 

««  Dr.    « 


« 


0000.00 
0000.00 


Whisky,  all  sold,   am't  of  Cr.  side, 

«    *«  Dr.  side, 

Commission,  per  Cr.  side, 
Charges,  am't  of  Cr.  side, 
«  Dr.    « 


0000.00 
0000.00 


tl 


000.00 
000  00 


ff 


D.B. 


D  B. 


Close  "Interest"  into  "  Profit  &  Loss"  for  the  differ- 
ence of  both  sides,  being  a  loss  of 

I^"  The  above  should  be  Journalized  and  posted  before 
making  an  entry  of  the  following  statement : 

On  examination  of  "  Profit  &  Loss,"  we  find  that  it 
exhibits  a  net  gain  of  our  business  these  two  months 
of  $ which  am't  is  to  be  divided  in  the  fol- 
lowing order,  as  per  articles  of  Agreement,  viz. : 

Edward  Hope,     for  his  |  share  net  gain, 

Osgar  Hastings,   "    "   I 

Thomas  Merrick,  "    "   i 


(i 


(4 

(i 


141 


404 


88 


000 
000 


000 
000 

000 


00 
00 


00 
00 

00 


1542    94 


142 


BECKER'S  BOOK-KEEPING. 


II' I 


1 

' 

••rfil 

J 

Having  Journalized  and  posted  the  foregoing,  the  student 
will  take  a  «  Balance  Sheet "  simply  of  the  Dr.  and  Cr.  balances 
of  the  several  acconnts  in  the  Ledger,  which,  if  correct,  will 
prove  both  sides  equal  on  addition.  This  being  performed 
satisfactorily,  the  Ledger  is  ready  for  balancing  all  those  ac- 
counts which  remain  open.  The  accounts  are  to  be  balanced 
according  to  the  method  of  the  "  Periodical  Closing  of  Ac- 
counts," to  which  the  student  is  referred  for  explanation.  This 
method  is  adopted  for  the  purpose  of  showing  how  accounts  are 
balanced,  if  they  are  to  be  continued  in  the  same  book. 


DESCRIPTION  AND  EXEMPLIFICATION 


OF 


COMMERCIAL  FORMS 


*v 


M    II 


[ 


l|ill 


% 


DRAFTS  AND  BILLS  OF  EXCHANGE. 


Drafts  and  Bills  of  Exchange  have  certain  points  of  agree- 
ment. They  are  both  written  orders  signed  by  one  party  and 
directing  a  person  at  a  distance  to  pay  to  I  he  order  of  a  third 
person,  in  whose  favour  they  are  drawn,  a  specified  sum  of 
money.  They  agree  also  in  their  object,  which  is  to  effect  a 
settlement  of  debts,  at  a  distance,  without  the  transmission  of 
money.  They  differ,  however,  in  the  fact  that  a  Draft  is  an 
Inland  Bill,  whereas  a  Bill  of  Exchange  is  a  bill  drawn  upon 
a  person  residing  in  a  foreign  country. 

The  parties  concerned  in  a  Draft  or  Bill  of  Exchange  are  the 
drawer,  or  party  who  draws  the  bill ;  the  drawee,  or  party  on 
whom  it  is  drawn  ;  and  the  remitter  or  party  in  whose  favour 
it  is  drawn.  When  the  drawee  has  accepted  the  bill  or  draft, 
he  is  called  the  acceptor.  These  are  the  original  parties  to  the 
contract.  The  remitter  may  assign  his  right  in  the  bill  to 
another,  by  writing  his  name  on  the  back ;  he  thus  becomes 
an  endorser.  The  person  who  obtains  possession  of  the  bill  by 
endorsement  may  transfer  his  right  to  another,  in  the  same  man- 
ner, and  each  possessor  may  do  the  same,  till  the  bill  is  filled 
with  endorsers.  The  possessor  of  the  bill  or  the  person  in  whose 
hands  it  may  be,  at  any  time,  is  called  the  holder. 

A  Set  of  Exchange  is  a  bill  drawn  in  sets  or  several  bills  of 
exchange.  Each  of  these  is  payable  on  condition  that  the 
others  remain  unpaid,  so  that  when  one  has  been  presented 
and  paid,  the  others  are  void.  There  are  generally  three  bills 
to  each  set.  The  "  first  of  exchange"  is  payable,  "  second  and 
third  of  the  same  tenor  and  date  unpaid  -,"  the  "  second  of  ex- 
change," "  the  first  and  third  of  the  same  tenor  and  date  un- 
paid," &c.  The  object  of  drawing  bills  in  this  manner  is  to 
guard  against  loss  or  inconvenience  to  the  holder.  The  first  bill 
of  the  set  that  is  presented  to  the  drawee,  is  paid.  The  proviso 
inserted  in  each  is  necessary,  in  order  that  the  drawee  may  not 
ht\  obliged  to  pay  more  than  one  bill  of  the  same  set. 

"  Bills  of  Exchange  are  either  made  payable  at  sight,  at  a 
N  19  (145) 


II 


146 


BECKER'S  BOOK-KEEPING. 


BILL  OF  EXCHANGE. 


147 


certain  time  after  sight,  or  after  date,  or  at  usance,  by  which 
is  meant  the  usual  term  allowed  by  the  custom  or  law  of  the 
place  where  the  Bill  is  payable."  Usually,  days  of  grace  are 
allowed  for  payment,  that  is,  a  few  days  beyond  the  time  when 
the  bill  becomes  due.  Jill  bills  payable  at  sight,  however, 
must  be  paid  when  presented,  or  during  banking  hours  on  that 
day.  In  the  United  States  and  Great  Britain  three  days  of  grace 
are  allowed  on  all  bills  not  payable  at  sight.  On  the  continent  of 
Europe,  the  number  of  days  of  grace  varies  from  three  to  thirty. 

An  acceptance  of  a  bill,  or  engagement  to  pay  the  same  may 
be  absolute,  qualified,  or  partial.  It  is  absolute  when  the  ac- 
ceptor engages  to  pay  the  bill  according  to  its  request ;  it  is 
qualified,  when  he  agrees  to  pay  it  under  certain  conditions  ; 
and  it  is  partial,  when  he  is  to  pay  a  part  of  the  amount,  or  to 
pay  at  a  dilFcrent  time  or  place  from  that  mentioned  in  the  bill. 
When  the  acceptance  is  absolute,  the  drawer  writes  *'  accepted," 
and  signs  his  name,  or  writes  "accepted"  only,  or  merely  signs 
his  name  at  the  bottom  of  the  bill,  or  across  it.  When  the  bill 
is  drawn  at  so  many  days  after  sight,  the  acceptor  should  write 
on  it  the  date  of  acceptance.  When  the  acceptance  is  qualified, 
or  partial,  the  holder  should  give  notice  of  the  fact  to  the  other 
parties  to  the  bill,  if  he  intend  to  resort  to  them  in  case  of  non- 
payment. 

If  a  Bill  be  not  accepted  or  not  paid  when  due,  and  it  be  pro« 
tested,  the  holder  can  recover  the  amount  of  the  bill  from  the 
drawer,  the  endorsers,  or,  if  it  has  been  accepted,  the  acceptor. 
He  can  also  recover  damages,  »*  consisting,  besides  interest,  of 
the  exchange  or  re-exchange,  commission,  postage,  expenses  of 
protest,  and  interest  on  these  expenses." 

We  have  given  but  a  brief  explanation  of  this  species  of 
mercantile  paper.  For  more  extended  information  on  the  sub- 
ject, the  student  must  consult  works  whose  object  is  to  treat  of 


Ix  at  large. 


PAR  OF  EXCHANGE. 


" «  The  Par  of  Exchange'  of  any  two  countries  means,  among 
merchants,  the  equivalency  of  a  certain  amount  of  the  currency 
of  the  one  in  the  currency  of  the  other,  supposing  the  curren- 
^ies  of  both  to  be  of  the  precise  weight  and  purify  fixed  by 
their  respective  mints,^'     For  example,  the  exchange  between 


le  United  States  and  Great  Britain  is  at  par  when  ^1  sterling 
5.  equal  to  $4.44f  or  j^I  to  4*.  6d.  Hence,  when  this  is  the 
-ase,  a  bill  drawn  in  London  for  £100  is  worth  in  Philadelphia 
|>444.44,  and  vice  versa.  If  a  bill  on  London  for  more  than 
£100  can  be  bought  in  Philadelphia  for  y^444.44,  the  exchange 
is  below  par  and  is  in  favour  of  Philadelphia  and  against  Lon- 
don; but,  if  a  bill  on  London  for  £100  cannot  be  bought  for 
{^444.44,  the  exchange  is  above  par  and  is  against  Philadelphia 
and  in  favour  of  London. 

The  forms  of  Bills  of  Exchange  and  Drafts  are  subjoined. 

What  is  the  first  point  of  agreement  between  Drafts  and  Bills  of  Exchange  ? 
The  second  1  How  do  they  differ?  What  are  the  names  of  the  original  par- 
ties concerned  in  a  Dft.,  or  Bill  of  Exchange  1  What  is  meant  by  the  endorser  ? 
The  holder?  What  is  a  Set  of  Exchange?  What  condition  is  contained  in 
each  bill  of  a  set  ?  Illustrate  this  in  the  case  of  a  set  containing  three  bills. 
What  is  the  design  of  inserting  this  condition  in  each  bill  ?  What  is  the  de- 
sign of  drawing  bills  in  sets  ?  How  are  Bills  of  Exchange  payable  ?  What 
is  meant  by  usance?  What  are  days  of  grace?  On  what  bills  are  days  of 
grace  not  allowed  ?  How  many  days  of  grace  are  allowed  in  U.  S.  and  G.  B.? 
How  many  on  the  continent  of  Europe  ?  What  is  meant  by  an  acceptance  of  a 
bill  ?  How  many  kinds  of  acceptances  are  there  ?  When  is  an  acceptance 
absolute?  When  qualtjied?  When  partial?  How  is  an  absolute  acceptance 
Bignified  hy  the  drawee  ?  How  when  the  bill  is  drawn  at  sight  ?  What  mea- 
sure of  precaution  should  be  adopted  by  the  holder  when  the  acceptance  is 
qualified  or  partial  ?  What  is  to  be  done  if  a  bill  be  not  accepted  or  not  paid 
when  accepted  ?  If  it  be  protested,  from  whom  can  the  holder  recover  ?  What 
can  he  recover,  besides  the  am't  of  the  bill  ? 

What  is  meant  by  the  par  of  exchange?  Illustrate  by  an  example.  When 
is  exchange  below  par  ?     When  above  par  ? 


BILL  OF  EXCHANGE. 

Philada.,  June  Sth,  1847. 
Exchange^  £500  Sterling. 

At  thirty  days  sight  pay  to  the  w^der  of 
Rezin  Durham,  in  Liverpool,  Five  hundred  Pounds  sterling, 
for  value  received,  and  place  the  same  to  our  account,  nnth* 
or  rvitlwut  further  advice. 

To  Mr.  Theodore  Gehhard,  ^      Houston  Sf  Borden. 

Liverpool.     5 


I'll' 


•A^ 


148 


BECKER'S  BOOK-KEEPING. 


SET  OF  EXCHANGE. 


Philadelphtft,  June  I2th,  184"^ 

Exchange  £lOOO  Sterling. 

Sixty  days  after  sight  of  this,  our  first  of 

^  Exchange,  {second  and  third  of  the  same  tenor  and  date 

2  unpaid,)  pay  to  the  (yrder  of  J,  Whatman  4*  ^o.,  0?ie 

^  Thousand  Pounds  Sterling,  for  value  received,  as  per 

advice,  f(yr  the  account  of 


To  Messrs.  Rothschild  S^  Co,, 

London, 


Hastings  Sf  Co. 


Philadelphia,  June  I2th,  1847. 

Exchange,  ^1000  Sterling. 

Sixty  days  after  sight  of  this,  our  second 

/O  of  Exchange,  {first  and  third  of  the  same  tenor  and  date 

^  unpaid,)  pay  to  the  order  of  J,  Whatman  Sf  Co,,  One 

^  Thousand  Pounds  Sterling,  for  value  received,  as  per 

m  advice,  for  the  account  of 


To  Messrs,  Rotlischild  4-  Co., 

Jjondon, 


Hastings  S;  Co. 


Philadelphia,  June  I2th,  1847. 
Exchange,  £1000  Sterling. 

Sixty  days  after  sight  of  this,  our  third  of 

.  Exchange,  {first  and  second  of  the  same  tenor  and  date 

^unpaid,)  pay  to  the  order  of  J.  Whatman  J}-  Co.,  One 

^  Thousand  Pounds  Sterling,  for  value  received,  as  per 

^  advice,  for  the  account  of 


To  Messrs.  Rothschild  dj-  Co., 

London, 


I 


Hastings  fy  Co. 


DRArTS. 


149 


DRAFTS. 

Philadelphia,  June  2Sth,  1847. 

8722,iVir. 

At  three  days  sight,  pay  to  the  07'der  of 

Messrs.  Carlisle  S^  Gaskill,  Seven  hundred  and  twenty-trvo 

^o*ff  Dollars,  without  defalcation,  for  value  received,  and 

charge  the  same  with,  or  without  further  advice,  to  account  of 

To  Messrs.  Wfn.  Forepaugh  Sf  Co,,  '>    Hastings  Sf  Co. 

Merchants,  Boston,     S 


Ne7V  Orleans,  July  18^A,  1847. 
81500. 

Tliirty  days  after  sight,  pay  to  the  order  of 

James  Lawson,  Esq.,  Fifteen  hundred  Dollars,  for  value 
received,  and  place  tlie  same  to  account  of 


To  Messrs.  Jlas tings  <^  Co., 
Merchants,  Philadelphia, 


Carson  4*  Trasel. 


Cincinnati,  July  20th,  1847. 

8850. 

At  sight,  pay  Charles  Knorr,  or  order. 

Eight  hundred  and  fifty  Dollars,  for  value  received,  and 
charge  the  same  to  account  of  James  Nelson,  Esq.,  as  per 
advice. 


To  Messrs.  Manouvrier  4*  Co.,! 

New  Orleans.     5 


William  Lampas. 


8600. 


Philada.  July  29th,  1847. 


Sixty  days  after  date,  pay  to  tJie  order  of 
George  Bache  4*  Co.,  Six  hundred  Dollars,  without  defalr 
cation,  for  value  7xceived,  and  charge  the  same  to  account  of 


To  Dupass  <Sf  Vallute, 
Baltimore, 


Frank  Butler. 


m2 


'K 


I 


':0 
I'    I 


150  BECKER'S  BOOK-KEEPING. 

PROMISSORY  NOTES. 

A  Promissory  Note  is  a  written  promise  from  one  party  to 
pay  another  a  specified  sum  of  money.  The  party  promising 
to  pay  is  called  the  drawer,  or  maker;  the  party  to  whom  the 
note  is  payable  is  called  the  payee  or  holder. 

As  in  the  case  of  Bills  of  Exchange,  it  is  customary  to  allow 
three  days  of  grace  on  all  notes,  and  interest  or  discount  is 
charged  for  these  three  days  whether  the  note  be  paid  or  not 
before  their  expiration. 

If  the  payment  of  interest  be  not  conditioned  in  the  note,  it 
cannot  be  enforced.  In  Pennsylvania,  a  note  must  contain 
the  words  "  without  defalcation,"  to  render  them  negotiable. 
In  New  York  and  some  other  states,  this  phrase  is  not  required 
by  law,  the  words  "  for  value  received"  being  sufficient.  In  some 
other  states,  the  words  "without  defalcation  or  discount"  are  used. 

Notes  payable  to  the  order  of  a  person  can  be  transferred 
from  one  holder  to  another  by  endorsement,  as  in  the  case  of 
Bills  of  Exchange.  The  endorser  is  liable  for  the  amount,  if 
the  drawer  refuse  to  pay  it. 

The  insertion  of  the  word  "  severally,"  in  a  note  drawn  by 
two  or  more  persons,  renders  each  one  of  them  liable  for  the 
whole  amount  in  case  of  their  failure  to  pay  it  conjointly. 

The  various  forms  of  a  promissory  note  are  subjoined. 

What  is  a  Promissory  Note  1  What  names  are  given  to  the  parties  1  For  what 
time  is  interest  or  discount  on  a  note  charged  %  When  only  can  interest  be 
charored  on  a  note?  In  Pennsylvania  what  words  must  be  inserted  at  the  end 
of  a  notel  Is  this  necessary  in  all  the  states  %  What  phrase  is  used  in  some 
states  1  How  can  notes  be  transferred  1  When  is  the  endorser  liable  for  the 
am't  of  a  note  ?  What  effect  has  the  word  severally  in  a  note  drawn  by  more 
than  one  person  1 

PROMISSORY  NOTES. 

Philadelphia,  May  I2th,  1847. 
81000. 

Thirty  days  after  date  I  promise  to  pay 

Hastings  S^  Co.,  err  order,  One  thousand  Dollars,  rvithout 
defalcation,  for  value  received. 

Robert  Goodrich. 


PROMISSORY  NOTES.  15J 

New  York,  May  Ibth,  1847. 
81200. 

Six  months  after  date,  rve  promise  to  pay 
James  Rondeau,  or  order,  Twelve  hundred  Dollurs,  for  value 

received. 

Fuss  8f  Bohr. 


4'. 


Philadelphia,  June  Sd,  1847. 

893  6,1^. 

Eight  months  after  date,  we  severally  and 

jointly  promise  to  pay  to  the  order  of  Samuel  Harper,  Nine 

hundred  and  thirty-six  tVj  Dollars,  withmt  defalcation,  for 

value  received. 

John  D.  Spicer. 

Henry  Fortune, 

Baltimore,  June  ISth,  1847. 

8200. 

On  demand  1  promise  to  pay  John  Kuhn 

(yr  hearer.  Two  hundred  Dollars,with  interest,  value  received. 

Dominick  Hognon. 

m 

JUDGMENT  NOTE. 
I  promise  to  pay  Charles  Brown,  of  the 
city  of  Philadelphia,  merchant,  or  order,  the  sum  of  Eight 
hundred  Dollars,  with  lawful  interest,  on  the  first  day 
of  December  next  ensuing,  without  defalcation,  /o/'  value 
received.  And  further,  I  do  liereby  empower  any  attorney 
of  any  of  the  courts  of  the  city  and  county  of  Philadelphia, 
(YT  of  any  other  court  of  record  of  Pennsylvania,  to  confess 
judgment  for  the  above  sum  and  costs,  with  release  of  erroi's, 
6^c.  Witness  my  hand  and  seal  this  second  day  of  June^ 
A.  D.,  one  thousand  eight  hundred  and  forty-seven.^ 

Peter  Cheatham. 

Sealed  and  delivered  in  the  presence  of 

John  Smith. 
George  Gerry. 


m 


i52 


BECKER'S  BOOK-KEEPING. 


DUE  BILLS. 

Due,  Philada.,  January  I6th,  1847,  toWm,  Strwig^ 
or  order y  Fifty-six  Dollar Sy  in  goods  from  our  st07'e,  vahe 
received, 

i56.  Doyle  Sf  May. 


Due,  on  demand,  to  Messrs.  Harrington  <Sf  Black,  or 
order,  One  hundred  and  trventy  Dollars,  for  Freight,  (jj-c, 
on  Nails,  from  Hollidaysburg,  shipped  per  Barge  Texas, 
to  Baltimore,  and  consigned  to  Wm.  Jones  4*  ^o.  there. 
Philada.,  April  24:th,  1847. 

8120.  Wm.  Bankson^ 

For  MercKts  Transportation  Company, 


Due  Louis  Crarvford,  or  hearer,  Trventy-five  Doh 
Jars.  Value  received.  New  York,  April  27th,  1847. 

825.  •Andrew  ForstalL 


*   lO  ♦  ^  » 


ORDERS. 

Mr.  Francis  Bacon  rviU  please  pay  to  H.  Rivers,  of 
bearer,  Sixty  Dollars,  in  mercliandise,  on  our  acc't. 

Turner  8c  Locker, 
Philadelphia,  May  V^th,  1847. 


Philadelphia,  June  \^th,  1847. 

Messrs.  James  Steel  Sf  Co. 

Gentlemen, 

Please  deliver  to  tlie  Bearer,  the 

Fifty  Barrels  Rye  Fhur,  bought  of  you  on  the  \2th  iiist, 

Mnd  oblige^ 

Yours,  6fC., 

L.  E.  Nordmann. 


RECEIPTS. 


153 


RECEIPTS. 

A  RECEIPT  is  a  written  acknowledgment  of  the  payment  of 
money.  Its  form  differs  according  to  the  circnmstances  under 
which  it  is  given.  When  the  debtor  has  satisfied  entirely  the 
demands  of  his  creditor,  the  words  "  in  full,"  or  "  in  full  of  all 
demands"  should  be  inserted  in  the  receipt.  If,  however,  he 
has  paid  only  a  portion  of  his  debt,  the  words  "  on  account,"  or 
«  in  part  payment"  are  used.  It  is  evident  that  these  phrases 
are  necessary  for  the  security  of  the  Dr.  or  Cr.,  as  the  case 

may  be. 

It  is  not  necessary  that  the  receipt  should  be  signed  by  the 
person  to  whom  the  money  is  owing.  Any  person  authorized 
by  him  to  receive  the  money  can  give  a  receipt,  taking  care  to 
sign  it  merely  as  an  agent  and  not  on  his  own  account.  Thus, 
if  A.  B.  receives  money  for  C.  D.,  he  should  sign  the  receipt 
«  For  C.  D.,  A.  B.,"  or  "  C.  D.  per  A.  B."  If  he  merely  sign 
it  "  A.  B."  the  receipt  will  be  no  security  to  the  payer,  because 
it  represents  A.  B.  as  receiving  the  money  on  his  own  account. 

When  a  receipt  is  given  for  a  note,  some  clerks  are  accus 
tomed  to  insert  the  words  «  which,  when  paid,  will  be  in  full, 
&c."  These  words  are  useless,  since  the  note,  if  drawn  for  the 
full  amount  of  indebtedness,  is  in  full  for  the  same,  when  re- 
ceived. No  suit  can  be  brought  for  the  value  of  the  goods  or 
other  property  for  which  the  note  is  given ;  it  can  only  be 
brought  to  recover  the  amount  of  the  note. 

Examples  of  the  various  forms  of  receipts  are  subjoined. 

What  is  a  receipt  1  Give  the  various  forms  of  receipts.  What  is  the  use 
of  the  various  distinctive  phrases  contained  in  them  %  Who  can  give  a  receipt 
in  the  absence  of  the  person  to  whom  the  money  is  due  1  How  must  it  be 
signed  in  that  easel  Illustrate  this  1  When  a  receipt  is  given  for  a  note, 
what  words,  sometimes  used,  should  be  dispensed  with  1    Why  % 


RECEIPTS. 

Received,  Philada.,  June  ^d,  1847,  of  Mr.  John  S 
Varhy,  Four  hundred  Dollars,  on  account. 

S^^"^'                               ^^  F.  Godley. 


i 


154 


BECKER'S  BOOK-KEEPING. 


BILLS. 


155 


Received,  New  York,  June  lOtk,  1847,  of  Messrs. 
Wittig  Sf  Gray,  Seventy-Jive  Dollars,  in  fuU  of  all  de- 
mands, 

875.  A.  W.  Owings  ^  Son. 

f  L,  M.  Ste7vart. 


Received,  Philada.,  July  15th,  1847,  of  Messrs. 
Rawson  6^  Musgrave,  their  note  at  six  months  from  bth  inst, 
for  Seven  hundred  and  thirty  Dollars,  in  fuU  for  UUof 
Mdse.  of  same  date, 

8730.  McReynolds^  Brothers. 


Received,  Phikda.,  Aug.  Ath,  1847,  of  Mr.  Samuel 
Fullborne,  One  hundred  and  trventy-five  Dollars,  in  full 
for  one  quarter's  rent,  of  the  drveUing-house,  No.  425  Arch 
Street,  due  the  1st  inst. 

8125.  Jonathan  Miesse, 

^  Isaac  Jackson,  Agent, 


Received,  Philada.,  Sept.  ISth,  1847,  of  Mr.  John 
Black,  by  the  hands  of  Messrs.  Bryan,  Nervhard  S^  Zcyin, 
Three  hundred  Dollars,  in  full  fm-  hiU  of  Mdse.,  sold  him 
March  I5th,  1847. 


8300. 


Gill  Sf  Gregg. 


FOR  A  LEGACY. 

Received,  Philada.,  Oct.  ISth,  1847,  of  James  La- 
vaUette,  executor  of  the  last  rvill  and  testament  of  Edward 
Whittaker,  deceased,  the  sum  of  Two  thousand  dollars,  in 
full  for  a  legacy  bequeathed  to  me  m  and  by  the  last  rviU 
and  testainent  of  the  said  Edward  Whittaker,  deceased, 

82000.  Foreman  Layset 


ON  A  MORTGAGE. 

Received,  Philada.,  Nov.  25th,  1847,  of  JacJcson 
Rumbach,  Four  hundred  and  eighty-fve  Dollars,  agreed  to 
be  m  full  for  principal  and  interest  of  the  third  payment 
mentioned  in  a  bond  and  mortgage,  I  hold  against  him  of 
lot  No.  — ,  situated  in  Clinton  Street. 
S485.  Calvin  Chestnut. 


>• »' 


BILLS 

Bills  are  of  two  kinds,  viz. :  bills  of  parcels,  and  bills  fol 
work  done,  or  services  rendered.  The  former  are  used  b^ 
the  merchant,  and  the  latter  by  the  mechanic,  or  professiona. 

man. 

As  bills  of  parcels  are  for  goods  sold,  the  form  is  usually  ol 
this  kind  :  "  A.  B.  Bought  of  C.  D."  In  the  bills  of  mechanics, 
physicians,  &c.,  this  form  cannot  of  course  be  used.  The  bill  is, 
therefore,  made  out  thus  :— A.  B.  to  C.  D.,  Dr."  The  insertion 
of  the  "  Dr."  at  the  end  is  not  necessary,  neither  is  it  recom- 
mended, because  it  savours  too  much  of  the  practice  of  Single 
Entry  Book-keeping. 

There  are  a  few  abbreviations  used  in  making  out  bills, 
which  are  as  convenient  as  they  are  customary.  The  principal 
ones  are  the  following : 


Mdse.  is  used  for  Merchandise. 


Bo't  is  used  for 

Acc't  or>,  " 

P'ct.  or;J^  " 

Rec'd  PayH  " 

Co.  '* 
Dr. 

Cr.  " 

Ara't  " 

Inst.  " 

Ult.         .  " 


What  two  kinds  of  bills  are  there  1  What  is  the  form  of  bills  of  parcels  I 
Of  bills  for  work  done  ?  What  practice,  in  this  kind  of  bills,  is  condemned  1 
Why  1    Mention  some  abbreviations  used  in  bills. 


Hhds. 
Bbls. 

hogsheads 
barrels. 

Doz. 

(« 

dozen. 

Ps. 

Gro. 
Yds. 
Ea. 

pieces, 
gross, 
yards, 
each. 

(2) 

(t 

at. 

r 

(« 

per. 

156 


BECKER'S  BOOK-KEEPING. 


The  following  are  exemplifications  of  the  two  forms  of  bills : 

BILL  OF  PARCELS. 

Philada.,  July  \sty  1847. 
Messrs,  James  Wood  ^  Co. 

T^  8  .c-..  B^'t  of  Barron  S^  Aubrey. 

2  ps.  BPk  Silk  Velvet,  38  Junes,  47i  yds.  &  .  .  $3.12^  $148.44 
1  »*  "  Satin  Fcsting,2iMttres,2&  "  ".  .  3.00  108.00 
4   "  Ckoppas  Hdkfs *•  ..       •           6.37i  25.50 

3  "  6-4  BUuk  Paris  Crape,       .        •        .    ««  .        ,  7.75  23.25 

$305.19 


BILL  OF  SERVICE. 

Philada,,  Sept.  ISth,  1847 
Mr.  James  K.  Ireland^ 

To  P.  S.  Duval. 

1847. 

dug,  21.  To  writing  etreular  on  Tramfer  Paper,  and  tran*- 

f erring  the  same  to  Stone,        .         •         ,  $1.00 

"  Printing  300  (hpies  if  the  same,  .  8.00 

"  300  SheeU  of  QUo  Post,  .        .        .  1.75 

Stpi.  9.  To  tran^erring  labels  for  Calico  Prints^from  Copper 

to  Stone,  and  adding  the  words  "  Warranted 

Madder  Colours"  on  5  of  the  transferred  labels,       2.50 

««    18.  To  Paper  and  Printing  10,000  Copies  of  each  of  the 

two  labels,  being  delivered  as  follows,  viz.f 

^f'Uh    iUvis    ifffu    a/ $2.50 /r  if.  50.00 


5.75 


52.50 


$58.25 

Received  payment  in  faU, 

P.  S.  Duval. 

^  Benjamin  Hollis. 


*  * ••  * 


BOTTOMRY  BONDS. 

A  Bottomry  Bond  is  a  bond  for  money  loaned  on  the  keel 
or  bottom  of  a  ship,  to  enable  the  owner  to  carry  on  a  voyage. 
It  is  therefore  a  sort  of  mortgage  on  the  ship.  If  the  ship  be 
lost,  the  lender  loses  his  money;  but,  if  it  returns  safe,  he  re- 
ceives the  sum  lent  and  the  stipulated  premium,  which,  on 
account  of  the  risk,  is  always  far  above  the  ordinary  legal  rate 
of  interest.  The  ship  and  tackle  when  brought  home  are  liable 
for  the  money  lent,  as  is  also  the  person  of  the  borrower. 

What  is  a  bottomry  bond  1    What  are  the  conditions  of  the  same  ?    What 
are  liable  for  the  money  lent  % 


MERCANTILE   ARITHMETIC 


■j..-:,:  iiJlii'iii'lSii 


'i« 


i 


MERCANTILE  ARITHMETIC. 

Under  this  head  it  is  proposed  to  give  the  principal  rules  for 
making  the  calculations  which  will  be  necessary  in  actual  busi- 
ness, as  well  as  in  working  the  preceding  transactions.  As  it 
is  desirable  that  the  student  should  make  his  own  calculations 
in  the  progress  of  the  work,  it  is  thought  most  advisable  to 
illustrate  the  rules,  where  examples  are  necessary,  by  exam- 
ples not  contained  in  the  transactions.  In  the  prosecution  of 
this  object  we  will  commence  with 

INTEREST. 

Under  this  head,  we  give  the  principal  rules  I'equired  for 
ready  calculation  of  interest.  As  the  student  is  supposed  to 
be  already  acquainted  with  them,  they  are  given  merely  to 
refresh  his  memory.  They  are  not  accompanied  by  explana- 
tions, since  those  who  need  the  latter  can  refer  to  works  iu 
which  the  subject  is  treated  of  at  large. 

Case  1.     To  find  the  interest  of  a  given  amount  for  one  year. 

Rule.  Multiply  the  principal  by  the  rate  per  cent,  and  di- 
vide the  product  by  100.. 

Case  II.  To  find  the  interest  of  a  given  amount  for  any 
numl^er  of  years. 

Rule.  Find  the  interest  for  one  year  and  multiply  it  by  the 
number  of  years. 

Case  III.  To  find  the  interest  for  a  given  number  of  months, 
at  six  p'ct. 

Rule.  Multiply  the  principal  by  half  the  number  of  months, 
and  divide  the  product  by  100. 

Though  the  above  rule  does  not  apply  when  the  rate  is  other 
than  6  p'ct.,  it  will  be  found  highly  useful,  since  that  is  the 
legal  rate  in  this  state  and  in  a  majority  of  the  stales  of  the 
Union,  and  almost  all  business  transactions  are,  in  consequence, 
computed  in  accordance  with  it. 

Case  IV.  To  find  the  interest  for  any  number  of  days  at 
6  p'ct. 

Rule.  Multiply  the  principal  by  the  number  of  days,  and 
(158) 


PARTIAL  PAYMENTS. 


159 


divide  by  6000 ;  or  multiply  by  one-sixth  the  number  of  days 
and  cut  off  three  figures  from  the  right  for  cents  and  mills. 

The  principle  contained  in  this  rule  may  be  applied  to  cases 
in  which  the  rate  is  other  than  6  p'ct.  Thus,  if  it  be  5  p'ct.  the 
divisor  is  7,200;  4  p'ct.,  9,000;  8  p'ct.,  4,500,  &c. 

By  combining  the  three  preceding  cases  we  have  another, 
which  is  of  frequent  occurrence,  and  which  we  will  give  as 

Case  V.  To  find  the  interest  for  any  number  of  years, 
months,  and  days,  at  6  p'ct. 

Rule.  Reduce  the  year  and  months  to  months.  Annex  to 
half  the  number  of  months,  one  sixth  the  number  of  days. 
Multiply  the  principal  by  the  number  thus  obtained  and  point 
off  three  figures  from  the  right  for  cents  and  mills. 

example. 

What  is  the  Interest  of  $600  for  5  years  4  mo's.  24  days,  at 

6  p'ct.  per  annum? 

•     yrs,       mos,         dys, 

5    ...    4    ...     6)24 
12  4 

2)64 

324 

600 

$194,40,0 

In  computing  the  interest  on  a  note,  three  days  are  to  be 
ftdded  to  the  time  for  which  the  note  is  draw^n,  and  the  interest 
calculated  for  the  number  of  days  thus  obtained.  This  direc- 
tion is  to  be  observed,  because  three  days  of  grace  are  allowed 
on  every  note,  and  interest  is  charged  for  that  time,  whether  the 
note  be  paid  before  their  expiration  or  not. 


PARTIAL  PAYMENTS 

When  partial  payments  are  made  on  bills,  bonds,  accept- 
ances, &c.,  the  calculations  of  interest  must  be  made  upon  the 
principle  laid  down  by  the  United  States  courts,  and  the  courts 
of  most  of  the  states.  The  following  rule,  established  by  Chan- 
cellor  Kent,  is  given  in  Johnson's  Chancery  Reports,  voI.l  p.  17. 

«•  The  rule  for  caslinff  interest  vhen  partial  payments  have  been  made,  i»,  to  apply  the  payment 
in  tTehrstvlaee  TothUhcharee  of  the  interest  then  due.  If  the  payment  eiceeds  the  xnterest^ 
;L  lu&^trtitcLrd,  dLA/r..i/t*e  principal,  and  the  subsequent  interest  ts  to  be  computed 


160 


BECKER'S  BOOK-KEEPING. 


DISCOUNT. 


161 


•«  the  balane*  of  principal  remaining  due.  ff  the  paifment  be  lets  than  the  interest,  the  surptuB 
ef  interest  must  not  be  taken  to  augment  the  principal;  but  interest  continues  on  the  former 
principal  until  the  period,  when  the  payments,  taken  togftker,  exceed  Ike  interest  due,  and  then 
the  surplus  is  to  be  applied  towards  discharging  the  principal  ;  and  interest  is  to  be  computed  on 
tk*  balance  as  aforesaid." 

EXAMPLE. 

J^900.  Philadelphia,  Sept.  13/A,  1846, 

Three  months  after  date  /promise  to  pay  John  Noble, 

or  order,  Nine  hundred  Dollars,  without  defalcation,  for  value 

received,  James  Mitchell. 

The   following   endorsements  were  made   on    this   note : — 

Jan.  16th,  1847,  received  ;^175.  Aug.  5th,  received  ^20.  Oct.  9th, 
received  $^0,     April  15th,  1848,  received  ^360.     July  3d,  re- 
ceived ;^225.     What  was  the  balance  due  Sept.  5th,  1848  ? 
Principal 
Interest  from  Dec.  16  to  Jan.  16, 1  month 

First  payment 

Remainder, for  new  principal 

Interest  from  Jan.  16  to  Aug.  5,  6  mos.  21  days 
Second  Payment 

Balance  of  interest  unpaid 

Interest  from  Aug.  5  to  Oct.  9, 2  mos.  4  days 

Amount 
Third  payment 

Remainder  of  new  principal 

Int.  from  Oct.  9,  1847,  to  Ap'l  15, 1848,  6  mos.  6  days 

Amount 
Fourth  payment 

Remainder  for  new  principal 

Interest  from  Ap'l  15  to  July  3,  2  mos.  19  days 

Amount 

Fifth  payment 

Remainder  for  new  principal 

Int.  from  July  3  to  Sept.  5,  2  mos  2  days 
Balance  due 


DISCOUNT. 

It  is  customary  with  banks  to  calculate  discount  as  interest. 
This  method  does  not  give  the  true  discount,  but  a  sum  greater 
than  it,  and,  of  course,  the  present  worth  of  the  note  discounted 
is  less  when  calculated  according  to  the  bank  custom  than  when 
the  true  method  is  adopted.  Since  it  is  our  object,  however, 
to  impart  practical  knowledge  to  the  student,  we  shall  give  the 
rules  for  bank  discount. 


$900,00 
4,50 

904,50 
175,00 

729,50 

24,43 
20,00 

. 

4,43 

7,78 

12,21 

741,71 
30,00 

711,71 

ays 

22,06 

733,77 
3(K),00 

373,77 

4,92 

378,69 

225.00 

153,69 

1,59 

m 

$1.55,28 

Case  I.     To  find  the  discount  and  present  worth  of  a  note. 

Rule.  Find  the  interest  on  the  amount  of  the  note  for  three 
days  more  than  the  given  time.  This  will  be  the  discount.* 
Subtract  the  discount  from  the  amount  of  the  note  and  the 
remainder  will  be  the  present  worth. 

EXAMPLES. 

What  is  the  present  worth  of  a  note  for  j?250  payable  in  four 

months,  at  6  p'ct.? 

$  t  ^ 

250  250  250.00 

2  3  5.m 

5:00  6)750  244.87^  =  Present  worth. 

m  .12^ 

5.125  =  Discount. 
What  is  the  present  worth  of  a  note  drawn  for  31945  at  90  days? 

$ 
945 


93 


2835 
8505 

6)87885 

14.64.7  =  Discount. 
945.00 
$930.35.3  =  Pres.  worth. 


The  question  may  also  be  solved 


in  this  way. 

p.  c.  ^ 

60  days  =  1  =  9.45 

30    «      =  ^  -  4.725 

3     «      =,^=  472 


93  days 


$14.64,7 =Disct. 


Case  II.  To  find  the  amount  for  which  a  note  must  be 
drawn  in  order  that  a  particular  sum  may  be  obtained. 

Rule.  Divide  the  amount  to  be  obtained  by  the  present 
worth  of  ^1,  for  the  given  time  and  rate. 

EXAMPLE. 

For  what  amount  must  a  note  be  drawn,  so  that  when  dis 
counted  for  60  days,  its  present  worth  shall  be  ^285? 

.9895)285.0000(288,02  Amount  of  note. 
197  90 


1. 

63 


6)63 

.0105 
\^ 

.9895  =  Present  worth  of  $1. 


87  100 
79  160 

79  400 
79  160 


24000 
19790 

4210 

•  Discount  is  calculated  in  this  way  among  merchants.  But  banks  charge  discount 
for  four  days  more  than  the  time  of  the  note,  smce  in  estimating  the  time,  they 
count  the  day  on  which  the  note  was  discounted  and  the  day  of  its  maturity. 


/ 


162 


BECKER'S  BOOK-KEEPING. 


To  prove  the  correctness  of  this  result,  find  the  present  worth 
of  $288.02  for  the  given  time. 

288.02 
63 

86406 
172812 


6)18145  26 

3.024    = 
288.02 


285.00 


Disct. 
Pres.  worth. 


INSURANCE. 

Insurance  is  a  security  against  loss.  To  obtain  this  security, 
the  owner  of  the  goods  or  other  property  insured  is  required  to 
pay  to  the  insurer  a  certain  percentage  on  the  value  of  the 
same.  This  percentage  or  premium  is  sometimes  known  also 
by  the  name  of  Insurance.  The  written  instrument  by  which 
the  contract  is  effected  between  the  two  parties  is  called  the 
volicy. 

Case  I.  To  find  the  premium  to  be  paid  for  insuring  a  given 
amount. 

Rule.  Multiply  the  amount  to  be  insured  by  the  rate  of 
premium  and  divide  the  product  by  100.  By  adding  to  the 
premium  the  cost  of  the  policy y  the  whole  cost  of  insurance 
can  be  ascertained. 

EXAMPLE. 

What  will  it  cost  to  insure  a  property  valued  at  $5,640  at  2i 
p'ct.,  the  cost  of  the  policy  being  $1.25. 

f 

5640 

2i 


11280 

2820 

141.00 
1.25 


142.25  =   Cost  of  Insurance. 

If  property  be  insured  for  the  exact  amount  of  its  cost,  and 

the  amount  of  insurance  be  recovered  in  case  of  its  destruction, 

the  owner  of  the  property  will  lose  the  amount  of  the  premium 

and  policy      Hence,  it  is  customary  among  merchants  to  insure 


EQUATION  OF    PAYMENTS. 


163 


so  as  to  cover  the  premium  and  policy,  that  is,  to  insure  for 
such  an  amount  as  will  not  only  pay  the  value  of  the  property 
destroyed,  but  also  the  premium  and  cost  of  policy.    Hence,  we 

subjoin 

Case  II.     To  find  the  amount  that  must  be  named  in  the 

policy  to  cover  a  given  amount. 

Rule.  Make  the  following  statement:  As  the  difference 
between  100  and  the  rate  of  premium  is  to  100,  so  is  the  sum 
obtained  by  adding  the  given  amount  to  the  cost  of  the  policy 

to  the  required  amount. 

» 

EXAMPLE. 

What  sum  must  be  named  in  a  policy  to  cover  ^7639,  the 
premium  being  3  p'ct.  and  the  policy  ^1.25? 


% 

100 
3 

As    »7  :  100 


Proof. 

$ 
7876.54 
3 

236.29 
1.25 

23754  ==  Cost  of  Insuring. 
7876..54 

7639.00  =  Value  of  prop,  to  be  insured.    ^^ 
==  62 


7639.00 
1.25 

7640.25 

100 

97)764025.00(7876.54 
679 

850 
776 

742 
679 

635 

582 

530 

485 

450 


Required 
Qamt. 


EQUATION  OF  PAYMENTS. 

Equation  of  payments  is  the  finding  of  the  average  time  at 
which  several  amounts,  due  at  different  times,  may  be  paid,  so 
that  the  debtor  may  not  be  required  to  pay  before  the  money  is 
due,  nor  the  creditor  to  wait  for  payment  till  after  it  is  due. 

Case  I.  To  find  the  equated  time  of  payment,  when  sevc 
ral  sums  are  payable  at  different  periods. 


164 


BECKER'S  BOOK-KEEPING. 


Rule.  Multiply  each  amount  by  the  time  in  which  it  wili 
become  due,  and  divide  the  sum  of  the  products  by  the  amount 
of  the  debt ;  the  quotient  will  be  the  equated  or  average  time. 

EXAMPLE    I. 

A.  owes  B.  v^450.  Of  this  amount,  ^160  is  due  in  7  months, 
#140  in  8  months,  $90  in  10  months,  and  j>60  in  12  months 
What  is  the  equated  time  of  payment  ? 

•160  X     7  =  1120 

8  =  1120 

=  900 

=  720    mo9,  d*8. 


140 

X 

8 

90 

X 

10 

60 

X 

12 

45|0 


386|0  (8    17i  -  Equated  Time. 
360 

26 

30 

780 
45 


330 
315 

15 


PROOF. 

Calculate  the  Interest  on  $450,  for  the  equated  time,  and  see 
if  it  equals  the  sum  of  the  several  amounts  of  interest  for  the 
given  times. 


$1 

i 

450 

4 

8.00 
nt  for  7 

t 

450 
171 

7650 
150 

6)7800 

1.30  0  = 
18.00    = 

19.30     = 

=  Int.  for  171  days. 
=     »•     «      8    mos. 

=  Int.  of  $450  for  8  mos,  171  days. 

$160 
3^ 

480 

80 

#5.601 

$140 
4 

mos.  $5.60. 8 

$90                   $60 
5                      6 

mos.     $4.50  10  mos.   $3  60.  12  ro 

$5.60 

5.60 

4.50 

3.60 
19.30  Total  amt.  of  InteresU 

EQUATION  OF  PAYMENTS. 


165 


ANOTHER    PROOF. 

Find  the  interest  on  each  sum  payable  before  the  equated 
time  from  the  time  it  becomes  due  till  the  equated  time ;  then, 
find  the  discount  on  those  sums  payable  after  the  equated 
time,  from  the  time  of  equation  till  the  time  at  which  they 
become  due.  If  the  interest  equals  the  discount  the  operation 
is  correct. 


$ 

2)160 

.80  =  Int. 

$ 
160 

for  1  mo.           173 

$ 

2)90 

.45  = 
.19  = 

.64  = 

9 
90 

Disc't.  for  1  mo.                              12| 

46=     " 

mday.    2720 

>.  17i  dayg.        53 

6)2773 

.46  2 

• 

"  121  days.                  1080 
Dise't.  for  1  mo.  12f  dys.               60 

6)1140 

Diwt.  for  12|  days  =   .19  0 

$ 

140 

m 

2380 
46 

6)2426 

.404  - 

Int.  for  17i  days, 
talam't  of  Interest. 

$ 
60 

u 

60 
30 

90  = 
12  = 

$1.02  = 

$ 

60 

12f 

720 

40 

=  Di8cH.forSinos.     6)760 

=      "      «    mdays.   .12  6-     ^'f^'JVL 
.     Di«c't.  for  3  mos.                             ^^  ***^ 
121  days. 

1.26 
40 

$1.66  To 

1.02 
64 

$1.66  Total  amount  of  Discount. 

The  last  mode  of  proof  shows  the  object  of  the  equation, 
which  is  to  make  the  several  sums  payable  at  such  a  time  that 
the  interest  on  those  sums  payable  before  the  expiration  of  the 
equated  time  will  annul  the  discount  on  those  payable  after  its 
expiration. 


EXAMPLE    II. 


Boi.ght  goods  as  follows,  viz : — $75.  on  the  4th  of  Feb. ;  i59 
en  the  8th  of  April;  ^84.  on  the  17th  of  June;  and  $2H,  on  tae 


166 


BECKER'S  BOOK-KEjBPING. 


EQCATION  OF  PAYMENTS. 


167 


Ti  I 


12 til  of  August.      What  is  the  equated  time  for  paying  ine 

wliole  amount  at  once? 

Feb.  4th,  $75  —  due  at  this  date.* 
Apl.  8th,  59  X  63  -=  3717 
June  17th,  84  x  133  =  11172 
Aug.  12ih,    28  X  190  =         5320 


246 


)20209(82  days. 
1968 

529 
492 


37 

The  equated  time,  then,  is  82  days  from  Feb.  4th,  which  is 
April  26th. 

Case  II.     To  find  the  equated  time,  when  goods  are  pur 
chased  or  sold  at  diflferent  times,  but  on  the  same  length  of 
credit,  or  when  notes  having  the  same  length  of  time  to  run,  but 
drawn  at  different  periods,  are  discounted. 

Rule  1.  Multiply  each  sum  by  the  time  intervening  between 
the  date  on  which  the  first  sum  falls  due  and  that  on  which 
each  sum  respectively  falls  due;  divide  the  sum  of  the  products 
by  the  whole  amount  of  debt  and  the  quotient  will  be  the 
equated  time,  to  be  added  to  the  date  at  which  the  first  amount 
becomes  due.  i 

EXAMPLE. 

Purchased  goods  as  follows,  at  8  months  credit.  What  if 
the  average  time  of  payment? 


April  8th, 
June  9th, 
July  7th, 
Sept.  12th, 


$125 
286  X  62  =  17732 
359  X  9J  =  32310 

J50  X  157=  23550 

92j0 


)7359|2(79 
644 

919 

828 

912 

80  days  from  April  8th  will  bring  the  equated  time  to  June 
27th.  A  note  dated  on  that  day  at  8  mos.  will  become  due 
Feb.  27th  of  the  ensuing  year. 

•  The  equated  time  may  be  found  by  reckoning  from  the  present  period  or  fron 
the  time  that  the  first  payment  becomes  due.  In  the  latter  case,  the  multiplier  of 
111*  firat  payment  ia,  of  cou*8e,  nothing. 


Rule  2.  Multiply  each  sum  by  the  time  intervening  be- 
tween the  date  on  which  the  last  sum  falls  due  and  that  on 
which  each  sum  respectively  falls  due ;  divide  as  before  and  the 
quotient  will  be  the  equated  time  to  be  carried  back  from  the 
date  at  which  the  last  amount  falls  due. 

In  cases  like  this,  the  equated  time  may  be  found  also  by  the 

following  method,  which  is  the  reverse  of  the  operation  just 

given. 

$125  X  157  =  19625 

286  X  95  =  27170 

359  X  67  =  24053 

150    


9210 


)7084|8(77 
644 

644 
644 


8 
77  days  back  from  Sept.  1 2th,  will  make  the  day  of  equation 
fall  on  the  27th  June.     Thjs  result,  it  will  be  seen,  is  the  same 
as  that  obtained  by  the  other  method. 

PROOF. 

Multiply  each  purchase  made  before  the  equated  time  by  the 
number  of  days  between  it  and  the  equated  time,  and  find  the  sum 
of  the  products.  Multiply,  separately,  the  purchases  made  after 
the  equated  date,  by  the  time  between  the  equated  date  and 
the  date  of  purchase,  and  find  the  sum  of  the  products.  If  this 
be  equal  to  the  first  sum,  the  operation  has  been  correctly  p«r- 

formed. 

125  X  80  =  10000      359  x  10  =  3590 
286  X  18  =  5148      150  x  77  =  11550 


15148 


15140 


The  above  sums  cannot  be  made  exactly  equal  unless  we 
make  use  of  the  fractions.  It  will  be  seen,  by  reference  to  the 
example,  that  the  equated  time  is  not  80  days  from  April  8th, 
but  79  days  and  a  large  fraction  of  a  day.  But  as  it  approaches 
so  nearly  to  80,  we  have  adopted  that  number  for  ease  in  cal- 
culation. Hence,  the  difference  between  the  two  results  cen- 
tained  in  the  proof 

EXAMPLE    II. 

Discounted  on  the  8th  of  January  at  the  Mechanics  Bank, 


16S 


BECKER'S  BOOK-KEEPUNG. 


four  notes,  as  follows,  each  note  being  drawn  at  3  mos.    Wlial 
is  the  average  time  of  payment? 

One  due  Feb.  12,    «600 
"   Mar.  8,       200 
May    6,       350 
24,       550 


i 

600 
200  X 
350  X 


it 


24  =     4800 
86  =  30100 


550  X   104  =  57200 


17,00 


)92l|00(54i*  days 
85 

71 
68 

3 

54t\  days  from  Feb.  9th, brings  the  day  of  equation  on  April  4th 

FROpF. 

$600  X  54^  =  32506       $350  X  31|f  =  11138 
200  X  31tV  =  6035        550  X  49if  «  27403 


38541 


38541 


Case  III.  To  find  the  equated  time  when  goods  are  pur- 
chased or  sold  at  different  times,  and  at  different  terms  of  credit, 
or  when  notes  drawn  for  different  times  are  issued  at  different 

periods. 

Rule.     Find  the  time  at  which  each  amount  becomes  due 

and  make  the  equation  as  in  Case  XL 

EXAMPLE. 

Sold  goods  as  per  statement  annexed.     What  is  the  equated 
ime  of  payment  for  the  whole  amount? 

Jan'y.     20,      $200  at  3  rao's. 
Feb.         8,        350  "  4 
May         5,        250  "  2 
June         9,        400  "  3 

The  sale  made 

Jan'y.  20  is  due  April  20,  $200 
Feb.        8  "    "     June    8,    350  X 
May       5  "    "     July    5,    250  X 


(t 


ii 


(« 


49  -  17150 
76  —  19000 


June        9 


i( 


Sept.  9,    400  X   142  «^6800 


12(00 


)929i50 


77//.= ii 
77U  days  from  April  20th,  brings  the  period  of  equation  to 

July  6th. 

This  question  may  be  solved  also  by  Rule  II.  of  Case  II.,  and 
the  method  of  proof  is  the  same  as  in  Case  II 


EQUATION  OF  PAYMENTS. 


169 


EXAMPLE. 

Received  in  payment  for  goods  drawn  as  per  statement  an- 
nexed.    What  is  the  eqated  time  of  payment  for  the  aggregate 

amount  of  the  notes  ? 

One  dated  Jan.      28,  at  60  days     $600 


i( 


«( 


Mar. 

April 
June 


The  not!  dated 


Jan.     28  is  due  Mar. 


Mar. 

Apl. 
June 


7  " 

2  « 

19  " 


(( 


(( 


«( 


Apl. 
July 
July 


7, 

2, 

19, 


29, 
6, 
1, 

19, 


(( 


i( 


30 
90 
30 

AmH. 
$600 

350 

950 

1200 

31100 


(( 


n 


X 
X 
X 


350 

950 

1200 

Day».         Produett, 

lU  =  67200 

lot  =   36400 

18  «=   17100 


)12o7|00(38 
93 

277 
248 

29 

31 


39  days  back  from  July  1 9th  makes  the  equated  time  June  10th. 

Case  IV.  When  goods  are  bought  or  sold  ^i  a  given  credit, 
and  partial  payments  are  made  before  the  expiration  of  the 
stipulated  term  of  credit,  to  know  how  long  the  balance  may  run 
to  cancel  the  interest  on  the  payments  made  before  maturity. 

Rule.  Multiply  each  payment  by  its  time  after  the  date  of 
purchase ;  subtract  the  sum  of  the  products  thus  obtained  from 
the  product  of  the  whole  debt  by  the  term  of  credit;  divide 
the  remainder  by  the  balance  due  at  the  expiration  of  the  term 
of  credit,  and  the  quotient  will  be  the  time  that  the  balance  may 
run  from  the  date  of  the  sale. 

example. 

Bought  at  8  months'  credit,  a  quantity  of  Mdse.,  amounting 
to  |!9640.  At  the  end  of  two  mos.  paid  ^860. ;  at  the  end  of  three 
mos.,  |>1500;  at  the  end  of  5  mos.,  ^750:  at  the  end  of  6  mos., 
gl2000;  and  at  the  end  of  7  mos.,  $500.  When  will  the  balance 
become  due? 


5610 


25470 


22 


403 


li  A 


i'^ 


$9640 

X 

8  = 

=  77120 

$ 

5610  Deduct. 

25470 

860  X  2  =  1720 

403  0 

)5165|0(12f  §1  moa. 

1500  X  3  =  4500 

403 

750  X  5  -  3750 

1135 

2000  X  6  =  12000 

806 

500  X  7  —  3500 

• 

329 

170 


BECKER'S  BOOK-KEEPING. 


PROOF. 


Find  the  discount  on  all  these  amounts  that  were  paid  before 
maturity,  for  the  time  required  to  make  up  the  given  term  of 
credit.  If  the  sum  of  these  discounts  equal  the  interest  on  the 
balance  due  for  the  time  that  it  runs  beyond  the  given  term  of 
credit,  the  work  is  correct. 


$860 
3 

25.80  =  Disc't.  for  6  mos. 


$1,500 

21 

3.000 
750 


$25.80 

37.50 

11.25 

20.00 

2.50 

$i»7.05  Total  Discount. 


37.50  =  Disc't.  for  5  mos. 


$750 
375 
11.25  =  Disc't.  for  3  mos. 


$2000 
1 


4030 

4iif 


20.00  =  Disc't  for  2  mos. 


16120 
3290 


2)500 
2.50 


2)19410 


=  Disc't.  for  1  mo.         97.05  =  Int.  for  12iS|  —  8  =  4iH 


Case  V.  To  average  an  account  when  there  is  a  debit  and 
credit  of  unequal  amounts  and  the  total  of  each  is  due  at  differ- 
ent periods,  so  that  neither  the  debtor  nor  creditor  shall  be 
entitled  to  a  balance  of  interest. 

Rule.  Find  the  average  or  equated  time  for  the  Dr.  and 
the  Cr.  side  of  the  account,  according  to  the  rule  already  given; 
then,  multiply  the  smaller  sum  by  the  time  between  the  dates 
thus  found,  and  divide  the  product  by  the  balance  of  the 
account;  the  quotient  is  the  time  to  be  carried  back  or  forward 
as  the  case  may  require.  If  the  balance  be  on  the  side  of  the 
EARLIEST  date,  count  back  from  that  date;  if  it  be  on  the  side 
of  the  LATEST  date,  count  forward  from  that  date. 

EXAMPLE. 

Bought  goods  of  A.  B.  at  different  times  to  the  amount  of 
SlSOOj'which  amount  is  due,  by  equation,  July  8th;  and  I  have 
sold  him  at  different  times,  goods  to  the  amount  of  ^1500,  the 


EQUATION  OF   PAYMENTS. 


171 


same  being  due,  by  equation,  May  24th.  When  must  I  pay 
the  balance,  in  order  that  neither  of  us  shall  be  entitled  to 
interest  ? 


$1500 
45 

7500 
6000 


Smaller  sum. 

No.  of  days  between  the  dates. 


Balance  = 


3|00)675|00 
225 


The  balance  is  on  the  side  of  the  latest  date ;  therefore,  the 
quotient  must  be  added  to  it,  or  in  other  words,  we  must  count 
forward  225  days  from  July  8th,  which  will  bring  the  equated 
time  to  Feb.  19th,  of  the  ensuing  year. 


PROOF. 


From  July    8  to  Feb.  19,  is  225  days  225  X   1800 
Mar.  24  to  Feb.  19,  is  270     "     270  X   1500 


ti 


405000 
405000 


EXAMPLE    II. 


A.  B.  owes  me  for  goods  purchased  at  different  times,  |>1500, 
which  is  due  July  8th.  I  owe  him  for  several  parcels  of  goods 
iglSOO,  which  is  due  May  24th.  When  must  the  balance  be 
paid  so  that  neither  party  shall  be  entitled  to  interest  ? 

1500  X  45    =  6700 
6700  -i-  300  =  225 

The  balance  is,  here,  in  favour  of  the  earliest  date  ;  therefore 
we  must  count  back  225  days  from  May  24th,  which  will  make 
the  period  of  equation  Oct.  11th  of  the  preceding  year. 


PROOF. 

Jimount.  Days. 

From  Oct.  11  to  July     8,  is  270  days  1500   X  270 
«      Oct.  11  to  May  24,  is  225    "     1800   X  225 

EXAMPLE    III. 


Product*. 

405000 
405000 


Equate  the  payment  of  the  account  sales  annexed — 


172 


BECKER'S  BOOK-KEEPING. 


Sales  of  Brandy,  received  per  brig  Jamestown,  I.  Howe, 
master,  from  New  York,  on  account  of  Messrs.  J.  Morton  &  Go. 
there. 


When 
Sold. 


1847. 
Jan.  16. 
Feb.    1. 
Mar.  20. 
June  15. 


Ian.    5. 

M  M 


Purchasers. 


Geo.  Williams. 
Wm.  Morris  &  Co. 
Thos.  Barton  &  Son. 
Abraham  Myers. 


Terms. 


2  mos. 

3  •' 

4  * 
3     « 


Brandy. 


Pipes. 


39 

35 

19 

7 


Gallons. 


3770 

4480 

2369 

911 


90    1 11520 


When  Due. 


Mar.  16 

May  1 

July  20 

Sept  15 


Price. 


$1.00 
1.04 
99c 
1.02 


CHARGES. 

To  Cash  paid  Freight  on  90  Pipes 

"  Cash  paid  Wharfage  and  Dray  age  to  Store       .    . 

«*  Advertising  50c,  Storage  $56,  Labour  7.50      .     . 

«  Commission  on  Sales  $11693j^'jy  (S  2^  p'ct    .     . 
Net  proceeds  due  ^subject  to  collection)  May  15th,  1847. 


149.60 
45.62 
63.00 

292.35 


Amount 


3770 
4659 
2335 


00 
20 
41 


929  22 


11693  83 


650 


8'5 


$1U42  9C 


E.  E.    Philadelphia,  June  18th,  1847. 


N.N. 


In  equating  the  above  account,  the  first  thing  to  be  done  is 
to  ascertain  the  average  maturity  of  the  gross  sales.  This  can 
be  done  by  the  rule  under  Case  III. 


When  Due. 

Mar.  16, 

May  1, 

July  20, 

Sept.  15, 


JmaunU. 

Daft. 

Prodvets. 

$3770 

4659 

X 

46 

BS 

214314 

2336 

X 

126 

1= 

294336 

929 

X 

183 

» 

170007 

11694 

)678657^585VA 
58470 

93957 
93552 

405    ^ 

11694 

58  days  from  Mar.  16  makes  the  day  of  the  average  maturity 

of  the  gross  sales  May  13. 

The  next  thing  to  be  ascertained  in  a  case  of  this  kind  is  the 
average  date  of  the  cash  charges;  but,  in  this  example,  the 
date  of  all  the  cash  charges  is  the  same,  (Jan'y.  5th,)  and, 
hence,  the  operation  for  that  purpose  is  unnecessary. 

Having  thus,  in  compliance  with  the  first  direction  of  our 
lule  equated  the  Dr.  and  Cr.  side  of  the  account,  we  can  by 


EQUATIOJN  OF  PAYMENTS. 


lis 


applying  the  remaining  portion  of-  the  rule,  find  the  average 
maturity  of  the  net  proceeds. 

Date  of  Cash  charges,     Jan.  5th,  1847 
Maturity  of  Gross  sales.  May  13th,  " 
Cash  Charges  =  $195  $195  X  128  =  24960 

Net  proceeds 


$11143 


)24960(2rVr'4V  days. 
22286 

2674 


11143 


The  aTierage  maturity  of  the  net  proceeds  is  two  days  after 
May  13th,  which  will  make  it  fall  on  May  15th.  It  is  easy  to 
see  how  the  last  part  of  the  operation  is  in  conformity  with  the 
rule.  The  smaller  sum  is,  in  this  case,  the  Cash  charges.  This 
is  multiplied  by  "  the  time  between  the  dates,"  that  is,  by  the 
time  between  the  date  of  the  Cash  charges  and  the  maturity  of 
the  gross  sales.  The  product  is  then  divided  "by  the  balance 
of  the  account,"  that  is,  by  the  net  proceeds.  The  quotient  is 
the  number  of  days  to  be  counted  forward  from  the  latest  date, 
because  the  balance  is  "  on  the  side  of  the  latest  date." 

PROOF. 

Average  time  of  the  Cash  Charges,  Jan.  5th, 
"  "         "      Gross  Sales      May  13ih. 

The  difference  is  128  days,  and,  for  that  period,  the  factor  is 

entitled  to  interest  for  his  advance  of  ^^195,  the  amount  of  Cash 

charges. 

$195 
128 

1560 
390 
195 


6)24960 
4.16|0  =  Int.  for  128  days. 
The  owner  of  the  Mdse.  is  entitled  to  interest  on  the  net 
proceeds  due  him,  for  the  time  between  the  maturity  of  the  gross 
sales  and  the  maturity  of  the  net  proceeds,  which,  in  this  case, 
is  about  2i  days. 

$11143 

2i 

22286 

2786 


6)25072 

4.17|8  =  Interest  for  2|  days. 
Making  allowance  for  the  slight  error  in  the  fraction,  this 


'  r 


174 


BECKER'S  BOOK-KEEPING. 


result  corresponds  with  the  other,  and  the  correctness  of  the 
work  is  proved. 

The  calculation  which  we  have  just  gone  through  is  of  vast 
importance  in  the  Commission  business,  as  it  is  in  constant  use 
in  making  up  sales. 

PARTNERSHIP. 

Partnership  is  the  union  of  two  or  more  persons  in  trade 
The  individuals  associated  taken  collectively,  are  called  ?i  firm. 
The  amount  of  property  of  every  kind,  which  each  partner  in- 
vests is  called  his  capital,  or  stock  in  trade,  and  the  total  invest- 
ments constitute  the  capital  of  the  firm.  The  rules  lor  distri- 
buting gains  or  losses  among  the  partners  are  very  simple,  and 
are  given  here  to  refresh  the  memory  of  the  student. 

Case  I.  To  distribute  gains  or  losses  when  each  partner's 
stock  is  employed  on  equal  length  of  time. 

Rule.  Make  the  following  statement. 

As  the  whole  capital  is  to  each  partner's  capital,  so  is  the 
whole  gain  or  loss  to  each  partner's  share  of  the  same. 

N.  B.  This  rule  will  also  apply  to  the  distribution  of  a  bank- 
rupt's estate  among  his  creditors,  and  to  the  adjustment  of 
legacies,  when  there  is  a  deficiency  of  assets. 

EXAMPLE. 

A,  B,  and  C  entered  into  partnership  for  one  year.  A  put 
in  ^960,  B,  $1500,  and  C,  $650.  They  gained  ^800.  What  was 
each  partner's  share  of  the  gain  ? 


• 

$ 

•           $ 

960 

15()0 

650  =  31 10  =Whole  capital 

• 

• 

f 

Aa  3110    : 

960 

:  :    800    :    ^^'le.QS  =  A'a  ahare 

3110    : 

15U0 

:  :    800    :       385,85  =  B's  share 

3110    : 

650 

:    800    :       167  20  =  C's  share 

f  100,00  =  Total  gaina. 


Case  II.  To  distribute  gains  or  Idsses  when  the  capital  of 
the  partners  is  invested  for  unequal  lengths  of  time. 

Rule.  Multiply  each  partner's  "capital  by  the  time  it  was  em- 
ployed, and  add  together  the  resulting  products.  Then  say,  as 
the  sum  of  the  product  is  to  each  man's  product,  so  is  the 
whole  gain  or  loss  to  each  man's  share  of  the  same. 

example. 
A,  B,  and  C  entered  into  partnership.     A  put  in  g800  for 
one  year,  B,  ^900  for  8  months^  and  C,  151200  for  15  months 
They  gained  ^950.     What  was  the  gain  of  each  ? 


Jimt. 

800 

900 

1200 

:     9600    :  : 
:     7200    :  : 
:  18000    :  : 

Jtf0«. 
13 
8 
15 

#950 
950 
950 

Produettt 
=    9600 
=    7200 
"—  180«»0 

34b00 

As    34fm 
34800 
34800 

:     26i,07    =     A'l  share 
:     196,55    =    B's  share 
:     491.38    =    C's  share 

950,00    Whole  fain. 

AVERAGE. 


GENERAL  AVERAGE. 


175 


This  term  denotes  the  contributions  made  by  the  owners  of 
a  vessel,  its  cargo,  and  freight,  when  any  portion  of  the  same 
has  been  voluntarily  and  deliberately  sacrificed,  to  insure  the 
safety  of  the  rest.  The  property  sacrificed  is  called  jettison. 
When  a  vessel  encounters  a  violent  storm,  and  it  is  necessary, 
in  consequence,  to  cut  away  masts,  rigging,  anchors,  &c.,  or  to 
throw  a  part  of  the  cargo  overboard,  the  owners  of  the  vessel, 
the  cargo,  freight,  and  jettison,  must  contribute  to  the  general 
average.  When  a  vessel  is  obliged  to  put  into  port  for  repairs, 
&c.,  the  expenses  of  the  same,  together  with  the  expenses  of 
detention,  including  officers'  and  seamen's  wages,  provisions, 
&c.,  are  brought  into  general  average. 

Other  cases,  which  are  the  subject  of  general  average,  might 
be  stated,  but  it  is  unnecessary.  They  will  readily  be  sug- 
gested, when  the  object  of  the  average  is  known.  It  is  to  distri- 
bute the  total  loss  in  an  equitable  manner  among  those  whose  pro- 
perty is  saved  after  a  portion  has  been  abandoned  for  general 
safety.  The  jettison  must  also  contribute — otherwise  its  owner 
will  not  share  in  the  general  loss.  Every  thing  on  board  but 
wearing  apparel  contributes  to  the  average.  Seamen's  wages, 
however,  do  not  contribute,  in  order  that  there  may  be  no  in- 
ducement, on  their  part,  to  oppose  a  necessary  sacrifice  of 
property. 

In  computing  the  average  for  masts,  rigging,  &c.,  a  deduc- 
tion of  one  third  is  made  from  the  cost  of  replacing  them,  be- 
cause the  new  articles  are  so  much  better  than  the  old  ones. 


PARTICULAR  AVERAGE. 

This  refers  to  a  partial  loss ;  that  is,  a  loss  aflfecting  only  a 
portion  of  those  who  have  an  interest  in  the  ship  and  cargo,  or 
in  either  of  them.  Thus,  if  any  of  the  ship  furniture  be  ren- 
dered useless  by  ordinary  wear  and  tear,  or  an  anchor,  &c.,  be 
accidentally  lost,  or  any  sacrifice  is  made  for  the  benefit  of  the 
cargo  only,  or  of  the  ship  only,  the  loss  must  be  apportioned 
among  the  parties  concerned.  In  making  a  general  average, 
the  particular  average  is  deducted  from  the  original  value  of 
the  damaged  property,  and  the  remainder  contributes  to  the 
general  average. 

The  mode  of  adjusting  a  general  average  will  be  best  ex- 
plained by  the  following  example.  It  is,  in  substance,  taken 
from  Dando's  work  on  Book-keeping.  We  have  slightly  modi- 
fied it,  to  show  the  mode  of  working  particular  average.  The 
mode  of  adjusting  the  general  average  is  that  given  by  Chief 
Justice  Tenterden  in  his  work  on  the  Law  of  Shipping. 


176 


BECKER'S  BOUK-KBKrma. 


EXAMPLE. 


A  ship  bound  to  New  York  is  overtaken  by  a  dense  fog;  she 
strikes  on  a  sand  bar  near  Sandy  Hook,  and  it  is  necessary  to 
cut  the  cable  ;  the  danger  increasing,  a  part  of  the  cargo  is 
thrown  overboard,  the  masts  are  cut  away,  &c.  It  is  required, 
from  the  data  annexed,  to  adjust  the  general  average. 


Expenses  and  Losses. 

Amounts. 
I 

Contribatary  Interests. 

Amounts. 

A's  goods  cast  overboard 
B's    do        do        do 
C's    do    damaged 
D's    do        do 

Freight  of  goods  cast  overboard 

Cost    of    new    cable,    anchor. 

&.C.                               #1500.00 

Deduct  one  third               500.00 

2780 

335 
590 
460 

\ 

1000 
343 

500 

36 

5 

100 

00 
00 
00 
00 
00 

00 
00 

00 
00 
00 
00 

A's  goods  cast  overboard 
B's     do     do        do 
Value  of  B's  goods,  deducline 
freighi  and  charj:e8    #6800,0U 
Deduct  fur  damages*        410,00 

C*8  goods,  deducting  freight  and 

charges 
D's  do           do               do 
E's  do           do               do 
F's  do           do               do 
Value  of  the  ship         #11500,00 
Deduct  for  damages 

and  premium*               1500.00 

2780 
1613 

6390 

14225 
5119 
2255 

4818 

10000 
3800 

00 
00 

00 

00 
UO 
00 
00 

00 

00 

Expenses  of  bringing  the  ship 

oiTthe  bar 
Pilotage  and  port  duties  going 

into  the  harbour  and  out,  and 

commission  to  the  disbursing 

azent 
Adjusting  the  average 
I'ostaste 
Expenses  in  port 

Value  of  the  freight      #7600,00 
Deduct  for  seamen's 
wagesf                           3800,00 

7650 

00 

*  This  eiempTtftn  particular  avtrare. 
T  This    if  ih«  deduction   in  rte  in   New 
Tork.     In  other  ports  one  tbiid  ii  deducl^d. 

51000 

00 

The  proportion  of  the  losses  and  expenses  which  each  party 
is  to  bear  will  be  found  by  the  following  statement: 

As  $51000  :  $7650  :  :  $100  :  $15. 

That  is,  each  party  must  lose  15  p'ct  of  his  interest  in  the 
cargo,  ship,  or  freight.  Therefore  A  loses  vS417;  B,  1200,45; 
C,  52133,75;  D,  ^^767,85;  E,  jS338,25;  F,  ig722,70 ;  the  own- 
ers  of  the  ship  |»2070. 

The  following  tabular  statement  will  show  the  whole  result 
at  a  glance. 


Parties. 


Losses. 


Contribu- 
tions. 


Am'ts  to 
be  paid. 


Am'ts  to 
be  rec'd. 


Owners  of  the  ship 


B. 

C. 
D. 
E. 
F. 


2332 

8780 

161.1 

335 

590 


^~7m 


00 
00 
00 
00 
00 


00 


1 


2070 
417 
1200 
2133 
767 
338 
722 


?650 


00 
00 
45 
75 
85 
35 
70 


00 


17P8 
177 
338 
722 


75 

85 
25 
70 


30.{7  Pss" 


262 

2363 

413 


.3037 


(K) 
00 
55 


55 


From  the  above  statement  it  will  be  seen  that  the  amount  to 
be  2ontributed  by  each  party  is  not  actually  paid  into  the  com- 
mon treasury,  and  the  total  distributed  among  the  losers ;  but 


DOMESTIC  EXCHANGE. 


177 


that,  when  any  party  loses  more  than  he  contributes,  the  over- 
plus is  paid  to  him,  and,  on  the  other  hand,  when  any  one  is  to 
contribute  more  than  his  loss,  he  pays  the  overplus.  Hence  the 
amount  paid  must  eoual  that  received.  Such  is  the  case  in  the 
foregoing  example. 


DOMESTIC  EXCHANGE. 

What  should  be  paid  in  New  York  for  a  draft  on  St.  Louis 

for  $925,  premium  on  the  same  being  2i  p'ct.  ? 

$ 
As  100    :     102.5    :  :     925 
925 

5125 
2050 
9225 

100)94812.5 

$948.1215  =  Value  of  the  D*ft.  in  New  Yorlu 


Or  the  same  result  may  be  obtained  by  following  the  ordinary 

rule  of  percentage. 

925 

n         • 

1850 
4621 

23.122  =  Premium. 
925. 

$948.12^  «=  Val.  of  D'ft.  in  New  York. 


A.  B.  of  New  York  owes  C.  D.  of  St.  Louis  ^925.  For  what 

sum  should  the  latter  draw,  adding  2i  p'ct.,  so  that  if  the  draft 

be  collected  at  that  rate,  he  will  receive  ig>925,  the  full  amount 

of  his  account  ? 

$ 
As  97.5    :    100    ::    925 

100 

97.5)92500.0(948.72  =  Am't.  of  the  D'ft. 

8775 

4750 
3900 

8500 

7800 


7000 
6825 

2450 
1950 


500 


178 


BECKER'S  BOOK-KEEPING. 


PRoor. 


$948.72 

21 

189744 
47436 


Deduction  for  collecting. 
Am't.  of  D7t. 

$925.00|5    =  Proceeds  of  D'ft. 


2;i.71|80 
948.72 


FOREIGN  EXCHANGE. 

The  United  States  on  Great  Britain. 


del  Sterling 
$1  =  4s,  6d, 
Therefore,  ^61=     W 


240rf. 
54rf. 
V  of  a  dollar 


Hence,  any  given  number  of  pounds  sterling  will  be  equal  to 
so  many  times  V  of  a  dollar;  or,  in  other  words,  to  bring 
pounds  sterling  to  dollars,  multiply  by  40  and  divide  the  pro- 
duct by  9.  To  bring  dollars  Uo  pounds,  the  operation  is,  of 
course,  reversed. 

What  is  the  par  value  in  Federal  money  of  jESTO.  5s,  6d,} 

12)6.0  870.275 


20)5.500 
.275 


40 


9)34811000 

$3867.88|8 


What  must  be  paid  for  a  bill  on  London  for  jBISOO,  the  prt 
mium  being  9\  p'ct.  ? 

1500 

9)60000 


6666.66f 
9i 

6000000 
1666t)6f 


616.661 

6666.661 

$7283.331 


Premium. 
Am't.  of  Bill. 

Cost  of  Bill. 


$616.66|66f 


A  commission  merchant  desires  to  remit  to  his  consignor  in 
England,  the  proceeds  of  a  sale  amounting  to  jl72 83,33 i.    For 


MEASUREMENT  OF  WHEAT. 


179 


what  sum  must  the  set  of  exchange  be  drawn,  the  premium 
Deing  9i  p'ct. 


00 

The  question  can  also  be  solved  in  the  following  way : 

£        $ 
9  «  40 

Adding  9|  pc't.  for  premium,  £9  =  $43,70 

9  9  dK 

As  437.0    :    7283.33^     :  :     9 

?_  £ 

437|0)655500|0(1500  =  Am't.  of  Bill. 

2185 
2185       # 


00 

We  do  not  think  it  advisable  to  treat  of  exchange  on  other 
countries  than  Great  Britain,  because  to  do  so  would  occupy 
too  much  space,  and  the  student  can  refer  for  information  on 
that  subject  to  works  treating  extensively  of  commercial  arith- 
metic. We  have  selected  exchange  with  Great  Britain,  because 
a  knowledge  of  it  is  necessary  in  using  this  work. 


MEASUREMENT  OF  WHEAT. 

The  legal  weight  of.  a  bushel  of  wheat  is  60/5.  But,  as  each 
bushel  does  not  contain  that  amount,  it  becomes  necessary, 
when  a  large  quantity  of  wheat  is  sold,  to  ascertain  the  number 
cf  bushels  actually  sold,  estimating  each  bushel  at  its  legal 


$ 
109. 

$7283.331 
9 

£ 
:     1638.75 

100     £ 

25)16387500(1500  = 
10925 

54625 
54625 

Am't. 

1 

I 

of  Bill.                         i 

4  0)655500  0 

;ei638.75 

As 

$ 
25     :     100    :  : 

109. 

I 


180 


BECKERS  BOOK  KEEPING. 


MEASUREMENT  OF  WHISKY 


181 


weight.  This  must  be  done  either  by  calculation  or  by  weighs 
ing  each  bushel  as  it  is  measured.  As  the  latter  process  would 
be  tedious,  the  former  is,  in  practice,  adopted.  The  materials 
for  making  the  calculation  are  obtained  in  this  manner: — Fifty 
bushels  are  measured,  and  half  a  bushel  is  put  into  a  bag;  fifty 
more  are  measured,  and  another  half  bushel  is  thrown  into  the 
same  bag.  The  bushel  thus  collected  in  the  bag  is  weighed, 
and  its  weight  is  set  down  as  the  average  weight  for  each  of 
the  hundred  bushels.  The  same  process  is  gone  through  with 
th«  next  hundred  bushels,  and  continued  till  each  hundred  is 
disposed  of.  A  statement  is  then  made  out,  in  which  are 
written,  first,  100  Bus.;  secondly,  the  average  weight  of  that 
hundred;  and,  thirdly,  the  actual  measurement  of  the  same  at 
60lb.  to  the  bushel.  These  items  are  written  in  one  line. 
Under  these  are  placed  the  same  items  relative  to  the  second 
hundred,  &c.  From  this  statement  we  can  calculate  the  actual 
legal  measurement  of  the  quantity  sold,  by  the  following 

RULE. 

1st.  Add  up  the  column  of  bushels,  to  ascertain  th€  number 
of  bushels  sold. 

2d.  Add  up  the  weight  column  to  ascertain  the  sum  of  the 
average  weights  of  the  bushels  composing  each  hundred. 

3d.  Make  the  following  statement: 

As  the  number  of  hundred  bushels  is  to  the  number  of 
bushels,  so  is  the  sum  of  the  average  weights  to  the  weight  of 
the  given  number  of  bushels. 

4th.  Divide  the  weight  thus  obtained  by  60  to  ascertain  the 
number  of  bushels  by  weight. 

To  test  the  correctness  of  the  operation,  we  offer  the  follow 
ing  method  of 


weight.     If  tlie  sum  agrees  with  the  result  ascertained  ty  the 
preceding  rule,  the  work  has  been  correctly  performed. 


EXAMPLE. 

By  7neaiurement, 

By  weight. 

By  measurement. 

By  weight 

But. 

Iht. 

at. 

Bus.       lbs. 

Bus. 

lbs. 

CM. 

Bus.       lbs. 

100 

56 

6 

93   57d 

100 

57 

9 

95  56i 

100 

59 

2 

98  321 

100 

59 

98  20 

100 

60 

100 

100 

58 

7 

97  23i 

100 

100 

67 

8 

95  50 

100 

60 

100 

58 

96  40 

100 

61 

12 

102  55 

100 

61 
352 

But. 

But. 

101   40 

100 
600 

58 
355 

at. 

4 

Sba. 

97     05 

600 

5S6  40 

591   40 

But. 

Ot. 

600 

* 

+  600 

But. 

is  1 

)  =.  1200 

But.                    lbs. 

:  100  :  :  707 

100 

6  0)7070  0 

Bus.  1178,20 

352 

lbs. 

+   355 

-  707 

PROOF. 

»«. 

Vtt.      01.                But. 

But. 

at. 

60  : 

56  6  :  :  100  : 

93 

57d 

60  : 

59  2  :  : 

100  : 

98 

32d 

The  above  will  be  sufficient  to  exemplify  the  manner  in  which 
the  number  of  bushels  by  weight  to  the  hundred  by  measure- 
ment is  ascertained. 


But. 

586 
591 


Ot. 

40 
40 


1178     20  =  No.  of  Bus.  by  measurement. 

This  result,  it  will  be  seen,  is  the  same  as  that  previously 
obtained. 


PROOF. 


Ascertain  the  number  of  bushels  by  weight  in  each  hundred 
bushels  by  measurement.  This  can  be  done  by  making  the 
following  statement. 

As  60lbs,  is  to  the  average  weight -of  the  bushels  of  the 
hundred,  so  is  100  measured  bushels  to  the  number  of  bushels 
by  weight. 

2d.  Add  up  the  column  containing  the  number  of  bushels  by 


MEASUREMENT  OF  WHISKY. 

To  find  the  number  of  gallons  of  pure  whisky  equivalent  to 
a  given  number  of  the  adulterated  article. 

There  is  a  certain  standard  of  strength  adopted  by  which  the 
relative  purity  of  whisky  can  be  ascertained.  Whisky  of  a 
certain  strength  is  denominated  whisky  of  100°.  If  we  have 
given  a  certain  number  of  gallons  of  more  than   100°,  it  is 


182 


BECKER'S  BOOK-KEEPING. 


evident  that  they  will  be  equivalent  to  a  greater  number  100" 
strong.  But,  if  we  have  a  certain  number  less  than  100°  in 
strength,  they  will  be  equivalent  to  less  than  that  number  lOO*' 
strong.  Hence,  to  ascertain  the  number  of  gallons  at  lOO*',  we 
have  the  following 

RULE 

Add  together  the  number  of  gallons  of  each  kind.  Then,  if 
the  whisky  be  less  than  100°  strong,  deduct  the  percentage 
below  par  from  the  whole  number  of  gallons ;  but,  if  it  be  of 
greater  strength  than  100°,  add  the  percentage  above  par  to  the 
whole  number  of  gallons. 

EXAMPLE. 

Find   the  number  of  gallons  of  whisky,  100°  strong  con 
tained  in  30  bbls.,  the  contents  of  which  are  the  following: 


36,  34§,  32,    33,  35d, 

32,  36^,  311,  30,  321, 

32,  33,    35,    34^,  32^, 

36,  35^,  32,    30,  31d, 

31,  30,    36,    35,  32, 

36,  34,    32,    30,  33, 


323.01 

338.64 

329.00 
990.65  Gals. 


In  the  above  statement 


*^  means  3  p*ct.  below  par. 
%      "      2    "     above  •• 
•       "      par. 


BLOOM  AND  BAR  IRON. 

An  ordinary  ton  of  iron  weighs  2240  lbs.  This  is  called 
gross  weight.  By  adding  10  p'ct.  to  this,  we  obtain  the  weight 
of  a  ton  of  "  Bloom  Iron,"  which  is  2464  lbs.  This  is  usually 
denominated  double  gross  weight,  and  by  this  Aveight  Bloom 
Iron  is  invariably  sold. 

This  10  p'ct.  is  allowed  by  the  manufacturer  to  the  purchaser 
for  waste  in  working  it  down  to  "  Bar  Iron."  It  is  about  equal 
io  the  actual  waste. 


BLOOM  AND  BAR  IRON. 


183 


Case  I.  To  convert  Bar  Iron  weight  to  Bloom  Iron  weight. 

Rule.  Deduct  from  the  weight  of  the  former  in  pounds,  one 
eleventh  of  itself,  and  divide  the  remainder  by  2240 ;  or  divide 
the  number  of  pounds  of  Bar  Iron  by  2464. 


T. 

8 


Cvt.    Qr. 

17     1 


Reduce 
Bloom  Iron  weight. 


EXAMPLE    I. 
Lbs. 

14     (19866  lbs.)  Bar  Iron  weight  to 


Lbs. 
11)19866 
1806 


T. 

S34i0    )1806  0(     8 
1792 

14 
30 


Cv>t.     Qr. 

1        1    Bloopi  Iron  weight. 


280 
284 

56 

4_ 

224 
224 


Applying  the  other  rule,  the  operation  will  be  the  following. 

Qr. 
1    Bloom  Iron  weight. 


T.     Cvt, 
2464    )I9866(     8        1 
19712 


154 
20 

3080 
2464 

616 
4_ 

2464 
2464 


EXAMPLE    II. 

Reduce  the  following  draughts*  of  Bloom  Iron  to  double 
gross  weight. 


lis. 

2240 
2160 
2320 
2000 
2480 


11)11200 
1UI8 


3240  )10182  ( 
8960 

1222 
90 


24440 
2240 

2040 
4_ 

8160 
6720 

1440 

28 

40420 
2240 

lt<020 
17920 


100 


T.      Cvit.     Qr.      lb. 
4    10   3    18 


•  A  draught  means  as  much  as  can  be  placed  on  the  scale  and  weighed  at  one  Urna, 


184 


BECKER'S  BOOK-KEEPING. 


Case  11.  To  convert  Bloom  Iron  weight  to  Bar  Iron  weight 
Rule.  Add  to  the  weight  of  the  former  in  pounds  10  p'ct.  of 
itself,  and  divide  the  sum  by  2240. 


EXAMPLE. 


r. 

8 


Cwt. 

1 


Qr. 


Reduce      8      11     (18060  lbs.)     Bloom   Iron  weight   io 
Bar  Iron  or  gross  weight. 


3340 


lU. 
10)18060 

1806       T 

)1986t)(    8 
17^-20 

1946 
20 


CtDt.  Qr.  Ibt. 
17     1    14  grou  we 


38920 
8240 

J6520 
156S0 

840 
4_ 

3:>60 
2240 

1120 
M^ 

31360 
1240 

RMO 


/vt-w 


i 


"K*!^: 


1 


NiU-i 


H 


i*^ 


^^y^oovf\\ 


AUG  1 8  1347 


END  OF 
TITLE 


